Funds managed by global buyout firm KKR have agreed an all-cash take-private deal for mdf commerce, a software-as-a-service company focused on digital commerce technologies, at an equity valuation of CAD255m.
Montreal-based mdf’s North American eProcurement platform serves over 6,500 government agencies and more than 650,000 suppliers across Canada and the US.
Under the terms of the deal, mdf shareholders will receive CAD5.80 in cash per share, which represents a premium of around 58% on the closing price of the common shares trading on the TSX on 8 March of CAD3.68 per common share.
In a statement, Pierre Chadi, Chairman of the board of directors at mdf commerce, said the all-cash transaction provides shareholders with “certainty of value and immediate liquidity” and has been unanimously recommended by the board.
John Park, a Partner at KKR, added: “KKR is closely aligned with management’s vision to accelerate technology innovation across the broader mdf commerce platforms. We look forward to the enormous opportunity ahead for the mdf commerce eProcurement platform as governments increasingly embrace digital solutions.”
KKR’s investment is part of its ascendant strategy, which targets middle market US businesses.
