By Lisa Kerner
Charlotte, N.C., April 9 - Embarcadero Technologies, Inc. entered into a definitive agreement to be acquired by an affiliate of Thoma Cressey Bravo for $7.20 per share in a cash transaction valued at about $200 million.
A majority of the board of directors of Embarcadero Technologies has approved the merger agreement and recommended that shareholders also approve the deal, according to a company news release.
"After a review of our strategic alternatives by our board, we concluded that entering into an agreement with Thoma Cressey Bravo represents the best alternative available to our stockholders at this time," Embarcadero lead director Michael J. Roberts said in the release.
The transaction is expected to close during Embarcadero's second quarter, subject to stockholder approval. Following the closing, Embarcadero will no longer be publicly traded.
Wells Fargo Foothill, part of Wells Fargo & Co., has committed to provide the debt financing in support of the acquisition.
Embarcadero investor Chapman Capital LLC has been pushing the company to sell and sought to replace members of the San Francisco data management company's board. Chapman Capital is an adviser to two investment funds that together own 9.3% of the San Francisco data management company.
Thoma Cressey Bravo is a private equity investment firm.
| Acquirer: | Thoma Cressey Bravo
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| Target: | Embarcadero Technologies, Inc.
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| Transaction value: | $200 million
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| Payment per share: | $7.20
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| Announcement date: | April 6
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| Expected closing: | Second quarter 2007
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| Stock price for target: | Nasdaq: EMBT; $6.88 on April 5
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