By Lisa Kerner
Charlotte, N.C., Jan. 15 - Manatron, Inc. agreed to be acquired by an affiliate of Thoma Cressey Brava in a deal valued at some $66 million to take the company private, it was announced on Tuesday.
Under the companies' definitive agreement, Manatron shareholders will receive $12 cash for each share of Manatron stock held.
The agreement follows a year in which Manatron reviewed strategic alternatives.
Manatron's board of directors unanimously approved the merger agreement, which includes a $2 million termination fee, and is recommending its shareholders do the same.
The transaction is expected to close by April 30.
"For our shareholders, the purchase price represents a 38% premium over the closing price on Jan. 11, as well as a valuation that we felt was very fair based on current industry standards," Manatron co-chairman and chief executive officer Paul R. Sylvester said in a news release.
Thoma Cressey partner Scott Crabill said the private equity firm plans to continue to invest in Manatron's Government Revenue Management suite of software and grow the company through strategic acquisitions, with the goal of building a national company.
First Analysis Securities Corp. rendered a fairness opinion to Manatron's board. Wells Fargo Foothill, part of Wells Fargo & Co., committed to provide debt financing in support of the acquisition.
Manatron is a Portage, Mich., tax billing software development company.
| Acquirer: | Thoma Cressey Brava
|
| Target: | Manatron, Inc.
|
| Announcement date: | Jan. 15
|
| Transaction total: | $66 million
|
| Price per share: | $12.00
|
| Termination fee: | $2 million
|
| Expected closing: | By April 30
|
| Stock price of target: | Nasdaq: MANA: $8.80 on Jan. 14
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
