Constellation ends Redknee deal without matching offer Constellation ends Redknee deal without matching offer
2016-12-20 20:02 ET - News Release
Mr. Jamal Baksh reports
CONSTELLATION SOFTWARE ANNOUNCES TERMINATION OF REDKNEE INVESTMENT
The previously announced subscription agreement entered into by Constellation Software Inc. with Redknee Solutions Inc. on Dec. 9, 2016, providing for a proposed investment by a subsidiary of Constellation of $80-million (U.S.) in Redknee has been terminated pursuant to its terms.
The agreement provided that, in the event that Redknee received a competing proposal that was considered to be superior by Redknee to the transaction contemplated by the agreement, Constellation had the right to offer to amend the agreement such that the competing proposal was no longer a superior proposal. Redknee provided notice to Constellation and thereafter announced that it had received an offer from an alternative investor which Redknee's board of directors had determined constituted a superior proposal within the meaning of the agreement.
Constellation has provided notice to Redknee that it will not exercise the matching right. Accordingly, Redknee has terminated the agreement in accordance with its terms, and Constellation will receive a termination fee of $3.2-million (U.S.).
About Constellation
Constellation Software is an international provider of market-leading software and services to a select number of industries, both in the public and private sectors. Constellation's mission is to acquire, manage and build market-leading software businesses that develop specialized, mission-critical software solutions to address the specific needs of particular industries.