By Lisa Kerner
Charlotte, N.C., June 6 - Sopra Group announced that its subsidiary, Axway, will acquire all the outstanding stock of Tumbleweed Communications Corp. for $2.70 cash per share, or a reported $138 million.
The transaction is expected to close in the third quarter of 2008, a Sopra news release said.
A break-up fee of $4.5 million is included in the agreement.
Sopra expects the transaction to be accretive and will use its existing lines of credit to fund the deal.
"The combined entity is expected to more than double Axway's North American revenue," Axway chief executive officer Christope Fabre said in the release.
Sopra is a Paris-based IT consulting company.
Tumbleweed is a Redwood City, Calif., messaging security solutions company.
| Acquirer: | Sopra Group
|
| Target: | Tumbleweed Communications Corp.
|
| Announcement date: | June 6
|
| Transaction total: | $138 million
|
| Price per share: | $2.70
|
| Break-up fee: | $4.5 million
|
| Expected closing: | Third quarter of 2008
|
| Stock price of target: | Nasdaq: TMWD: $1.77 on June 5
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
