CITECT has entered into a takeover agreement with Thoma Cressey Equity Partners (TCEP), a US based private equity firm, under which a subsidiary of TCEP will make an off-market takeover offer for all the shares in Citect for $1.70 per share in cash.
The directors of Citect have unanimously resolved to recommend the TCEP proposals which, in their view, are superior offers to the proposals from Schneider Electric Australia Holdings. Accordingly, the directors have withdrawn their recommendation to shareholders and option holders to vote in favour of the Schneider transaction.
CEP and its predecessor firms have managed eight separate private equity funds and invested in approximately 200 companies. The firm has approximately US$1.75 billion of capital under management across three investment funds. TCEP has applied and refined industry consolidation or buy and build investment strategies for more than two decades across software, business services and healthcare industries.
Last November, Schneider Electric made an $80 million takeover offer for Citect. Under Schneider’s proposed transaction, all Citect shareholders would receive a cash payment of $1.50 per share plus a fully franked special dividend of $0.05 per share.