Following last week’s announcement that Boundless Corp is to acquire Windows CE access application developer River Run Software Group (CI No 3,429), the terminal and thin client company is now to purchase 600,000 shares of the common stock its former controlling shareholder, Morgan Kent Group Inc. Boundless will pay $5 per Morgan Kent share, amounting to a $3m transaction. Prior to Boundless’ announcement last week, Morgan Kent held 51.4% stake. According to Boundless vice president of corporate development, Jeffrey Moore, Morgan Kent was the company that provided Boundless with the first venture capital to get it off the ground in the terminal space. It will remain a significant shareholder, but control will return to Boundless shareholders. Morgan Kent says it is going ahead with the sale so the stock issued in the acquisition would be non-dilutive to Boundless public shareholders. Morgan Kent’s ownership in Boundless will fall to around 45.2% after the sale. According to the companies the stock was sold at approximately 14% below its market value. Boundless has a market capital value of around $32m, and Moore explained that the money coming back into Boundless as a result of the share purchase means it won’t have to issue additional shares. He commented, it will increase the size of the pie, and enable the River Run and future acquisitions.
