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XPEDITE MANAGEMENT PROPOSE $200M BUYOUT

The management of Xpedite Systems Inc, Eatontown, New Jersey fax and messaging services company has put forward a management buy-out proposal to buy 95% of the company’s outstanding shares for $22.50 per share, valuing the company at $202.5m. Earlier in the year a committee of the company’s independent directors began looking at ways of enhancing shareholder value. The offer is subject to at least $5m of the stock that is held by significant shareholders in the current company being rolled over to the new company. This will enable the ‘new’ Xpedite to write off the acquisition costs in one hit, what is known as recap accounting. Chief financial officer Bob Vaters said at present management owns about 7% of the stock. He added that the move does not signal a change of direction for thew company, merely a change of ownership. The management is backed UBS Partners LLC and Fenway Partners Inc. The company provides software and services for high-volume document distribution, including telex, e-mail, volume fax and mailgram services. It went public in February 1994, and raised a further $10m last August.

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