Vista Equity Partners Fund III has confirmed to the board of directors of SumTotal Systems its offer to acquire the firm for USD4.50 per share in cash.
Vista Equity Partners Fund III has confirmed to the board of directors of SumTotal Systems its offer to acquire the firm for USD4.50 per share in cash.
The 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 has completed its confirmatory due diligence, and has provided documentation in final form to SumTotal which it is prepared to execute upon notification from SumTotal that it intends to terminate its existing merger agreement. The acquisition will be fully funded by Vista.
Robert F. Smith, managing principal of Vista Equity Partners, says: "Vista appreciates the opportunity SumTotal has afforded us to complete our confirmatory due diligence with respect to an acquisition. We believe that the terms of our proposal present a superior alternative for the company’s stockholders and trust that the SumTotal board of directors will agree. We look forward to completing this transaction as quickly as possible, as we believe that a swift resolution which removes the increasing uncertainty and distraction of this process is in the best interests of the company’s shareholders, employees, customers and partners."
