View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
May 25, 2009

American Software to raise stakes in Logility

Full ownership means cost benefits and operational efficiencies for American Software

By CBR Staff Writer

American Software has made a cash tender offer to acquire all of the outstanding common stock of Logility not currently owned by the software company.

The transaction, which is valued at approximately $13.95m, will be financed with cash on hand.

James C Edenfield, president and CEO of American Software, said: “Full ownership of Logility will allow us to fully realise cost synergies and improve operational efficiencies by reducing complexity and eliminating duplication in finance and accounting functions. These cost synergies, when combined with access to all of Logility’s cash flow, will significantly benefit American Software in the future.”

The $7.02 per share cash offer represents a premium of 40.4% when compared to the closing price on March 18, 2009, the last trading day prior to the initial announcement of the tender offer, and a 37.6% premium over American Software’s original proposal of $5.10, which was also the closing price on May 14, 2009.

American Software’s only interest is in acquiring the shares of Logility held by the minority shareholders and it has no interest in disposing of its controlling interest in Logility. American Software is making its offer to purchase directly to public shareholders to acquire the portion of Logility it does not already own by means of a tender offer. Logility has informed American Software that the Logility special committee will recommend that shareholders accept the tender offer and tender their shares pursuant to the tender offer.

If upon expiration of the tender offer American Software owns 90% of Logility’s equity, Logility would become a wholly-owned subsidiary of American Software.

Content from our partners
How to turn the evidence hackers leave behind against them
Why food manufacturers must pursue greater visibility and agility
How to define an empowered chief data officer

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.