LONDON â€" The private equity firm Advent International has reached a deal to take private Unit4, a software provider based in the Netherlands, for 1.17 billion euros in cash, or $1.58 billion.
The offer of 38.75 euros a share represents a 32.4 percent premium over Unit4’s Oct. 11 closing price. On Oct. 14, Unit4 publicly announced it had been approached by several potential buyers. Unit4, which has 4,300 employees worldwide and provides software services including cloud computing, had nearly 470 million euros in revenue in 2012.
The deal follows a competitive bidding process and Unit4’s board unanimously recommended accepting the Advent offer, saying it included the highest price and other non-financial considations.
“Not only have we been able to negotiate the highest offer price, but we were also able to ensure the best non-financial covenants, thus safeguarding the interests of all our stakeholders,†said Philip Houben, chairman of Unit4’s supervisory board.
The firm said it had the right to terminate the deal if it has receives a more beneficial offer. The deal includes a $10 million termination fee and is subject to regulatory approval.
Advent, based in Boston, has focused on buyouts of a variety of sectors, including technology, media and telecommunications.
“We are looking forward to making another investment in the Netherlands. We have been investing in the software industry for over 20 years,†said Fred Wakeman, Advent’s managing partner.
The deal was structured so that Unit4 will have the flexibility to make substantial investments in research and development and to potentially fund future mergers that supplement its business, the companies said.
Chris Ouwinga, Unit4’s founder, is expected to remain as chairman of the firm’s management board.
ING and Oppenheimer & Company served as financial advisers to Unit4, while Goldman Sachs was Advent’s financial adviser.
The legal advisers were De Brauw Blackstone Westbroek for Unit4 and Allen & Overy for Advent.
