Vista Equity Partners Fund III has increased its offer to acquire SumTotal Systems to USD4.50 per share in cash.
Vista Equity Partners Fund III has increased its offer to acquire SumTotal Systems to USD4.50 per share in cash.
The revised offer values the company’s outstanding equity at approximately USD146m.
Vista, which owns approximately 13 per cent of SumTotal’s outstanding common stock, is the company’s largest stockholder. Vista focuses on equity transactions involving enterprise software businesses and technology-enabled solutions companies.
Vista’s offer to acquire the company for USD4.50 per share in cash represents a 124 per cent premium to the closing market price of SumTotal’s common stock on 3 April, the last trading day prior to the public announcement of Vista’s initial offer, and a 190 per cent premium to the 30 day volume-weighted average price leading up to the date of Vista’s initial offer.
Vista’s offer does not otherwise contemplate substantive changes from the terms of the existing merger agreement entered into by the company.
Robert F. Smith, managing principal of Vista Equity Partners III, says: "We remain firmly committed to the acquisition of SumTotal and believe that the terms of our revised proposal maximize value for the company’s stockholders.
"Vista believes that our proposal is in all respects superior to the terms of the company’s existing merger agreement. As the company’s largest shareholder, Vista is becoming increasingly concerned about the amount of time being consumed by this process and the attendant distraction to management and employees, and believes that it is in the best interest of all of the company’s constituencies that the process be resolved as quickly and with as little uncertainty as possible."
