Home | Business News | Browse by Publication | B | Business Wire

SumTotal Enters Into Merger Agreement With Accel-KKR.

Article Excerpt
SumTotal Stockholders to Receive $3.80 per Share in Cash

MOUNTAIN VIEW, Calif. -- SumTotal[R] Systems, Inc. (NASDAQ:SUMT), the market leader and a global provider of talent development solutions, today announced that it has entered into a definitive merger agreement with affiliates of Accel-KKR, a technology-focused private equity firm, in a transaction valued at approximately $124 million.

Under the terms of the agreement, affiliates of Accel-KKR will acquire all of the outstanding shares of SumTotal common stock for $3.80 per share in cash. The purchase price represents a premium of approximately 89% over SumTotal's closing share price on April 3, 2009, the last trading day prior to the public announcement of an unsolicited proposal from another party to acquire SumTotal for $3.25 per share in cash, and a premium of approximately 133% over SumTotal's average closing share price for the 30 trading days ending on April 3, 2009.

SumTotal's Board of Directors has unanimously approved the agreement and recommends that SumTotal stockholders approve the transaction.

Jack Acosta, Chairman of the Board of Directors of SumTotal, said, "After thorough and extensive analysis, and in consultation with our independent advisors, our Board has unanimously endorsed this transaction with Accel-KKR as being in the best interests of the Company and our stockholders. We are pleased that this transaction appropriately recognizes the value...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!