Hummingbird Communications Ltd has sweetened its offer for document management software house PC Docs Group International Inc with a new bid worth C$11 per share ($7.54), valuing the company at C$305m ($209.2m). The revised offer – which has been agreed to by both parties – comes in response to a hostile bid for the company by Open Text Corp, which earlier this month offered C$8.50 ($5.83) after Hummingbird and PC Docs had already reached a definitive C$212 ($145m) merger agreement in March.
The latest bid will effectively replace the previously-agreed plan, Hummingbird says, and 16% of the shares have already been committed to it. PC Docs’ board has endorsed the offer, which is conditional upon, among other things, 66.7% of the outstanding common shares of the company being tendered. PC Docs has also agreed not to solicit other offers and to pay Hummingbird a break fee equal to roughly 5% of the equity value of the company if the deal falls through. Figures were converted at a rate of C$1.458 to the dollar.
