LEXINGTON, Ky., Aug. 5, 2014 – Lexmark increased its cash offer for Sweden-based ReadSoft (NASDAQ OMX: RSOF-B) this week in what has become a bidding war with Hyland Software of Ohio. Hyland, which already owns 10.9 percent of ReadSoft, upped its latest offer to Swedish Krona (SEK) 55.00, prompting Lexmark to raise its offer to SEK 55.50, which is approximately $8.
Lexmark’s latest offer an 11 percent increase from its July 14 offer of SEK 50.00 for each Class A and Class B share of ReadSoft, for a price of approximately $248 million, net of cash acquired. Lexmark began its acquisition effort in May with an offer equivalent to $6.11 per share.
ReadSoft was founded in 1991 and has approximately 625 employees. The company is headquartered in Helsingborg, Sweden. Its full-year 2013 revenue was approximately $117 million.
Lexmark said in a release that it made the decision to increase its tender offer price because it continues to believe the combination of ReadSoft with Lexmark’s Perceptive Software is a strong strategic fit and in response to a competitive offer for ReadSoft shares announced on Aug. 4.
Pursuant to a Transaction Agreement with Lexmark, ReadSoft’s Board of Directors has agreed to continue to recommend in favor of Lexmark’s revised tender offer. In addition, the undertaking by ReadSoft’s two largest shareholders to tender their shares to Lexmark extends to Lexmark’s revised tender offer.
The offer period for ReadSoft shareholders to tender their shares will begin on or about Aug. 7 and run to Aug. 28, 2014, unless otherwise extended. Settlement of the tender offer is expected to occur around Sept. 4, 2014, after the end of the offer period.
Supporting Quotes:
“We remain convinced that the acquisition by Lexmark is the best strategic, long-term fit for ReadSoft and its employees,” said Paul Rooke, Lexmark chairman and CEO. “We have presented a compelling offer to ReadSoft shareholders, which is confirmed by the undertaking of ReadSoft’s founders to tender their shares to Lexmark, and the unanimous recommendation from ReadSoft’s Board of Directors.”
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