By Lisa Kerner
Charlotte, N.C., July 11 - Boston Communications Group, Inc. agreed to be acquired by Megasoft Ltd. for $3.60 per share, or about $65 million.
The $3.60-per-share price is a 120% premium over Boston Communications' average closing price during the 30 days ended July 6, according to a company news release.
Megasoft's wholly owned subsidiary Tea Party Acquisition Corp. will begin a 20-day tender offer to acquire all of Boston Communications' outstanding shares on or before Aug. 1.
The tender offer is conditioned upon approximately 83% of Boston Communications' shares being tendered in the offer. A $1.97 million termination fee is included in the agreement.
"We are extremely excited about this transaction and the resulting benefits to our shareholders, customers and employees," Boston Communications acting chief executive offer Joseph Mullaney said in the release.
"Our shareholders receive immediate and substantial value, with the offer representing a very significant premium over recent trading prices. Our customers gain from the broadened product offerings and combined technology resources of the two organizations, and our employees benefit from the enhanced opportunities in an organization poised to address a broad spectrum of industry and subscriber needs."
Chennai, India-based Megasoft is an information technology software company.
Boston Communications is a wireless communications services company based in Bedford, Mass.
| Acquirer: | Megasoft Ltd.
|
| Target: | Boston Communications Group, Inc.
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| Transaction total: | $65 million
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| Price per share: | $3.60
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| Termination fee: | $1.97 million
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| Announcement date: | July 11
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| Expected closing: | Upon approvals
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| Stock price for target: | Nasdaq: BCGI: $1.99 on July 10
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