20-20 Technologies poised for $77M takeover
By Canadian PressCAD/CAM/CAE CAD
Canadian design software maker to be acquired by U.S.-based investment firm.
Montreal — Montreal’s 20-20 Technologies Inc. says its board backs a $77-million takeover offer from a U.S. private equity firm, a deal it selected after talking to more than 50 interested parties.
The maker of design and manufacturing software for the furniture industry said Monday that it has inked a definitive agreement with an affiliate controlled by Vector Capital Corp., a firm focused on the technology sector, for $4 per share.
That represents a 28 per cent premium over the company’s closing share price of $3.12, the day before it announced a strategic review process.
The deal has the unanimous support of 20-20’s board of directors, which recommends shareholders vote in its favour. All of the directors, senior officers and major shareholders have made agreements with Vector to vote in favour of its offer.
Jean Mignault, founder and executive chairman of 20-20’s board has agreed to sell his stake in the company to Vector. He will continue on as a board member and as chief of strategic direction.
“The decision to initiate a strategic review process was a difficult one to make, but this outcome is the right one for all the stakeholders of the corporation,” he said. “Our vision from the outset has always been to build a software platform even more firmly establishing 20-20 Technologies as the worldwide leader in our vertical industry. Vector shares our vision for the future and therefore we strongly support the proposed transaction.”
20-20 Technologies provides computer-aided design, business and manufacturing software for the interior design and furniture industries. It operates in 11 countries with more than 500 employees.
© 2012 The Canadian Press