Actua Corp. (ACTA) to Sell GovDelivery in $150M Deal
- Wall St. touches two-week high on deals, strong earnings
- Unusual 11 Mid-Day Movers 10/24: (UNIS) (MBVT) (ACCO) Higher; (TDW) (INO) (BCC) Lower
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) to Acquire B/E Aerospace (BEAV) for $6.4B
- TD Ameritrade (AMTD) to Acquire Scottrade in $4B Cash & Stock Deal
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Actua Corporation (Nasdaq: ACTA) announced that it has entered into a definitive agreement with an investor group led by Vista Equity Partners under which it will sell GovDelivery, the leading provider of cloud-based government communications software solutions, for $153 million in cash, subject to certain adjustments, including working capital, cash, debt and other items. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2016.
“This transaction demonstrates the significant value Actua delivers in growing SaaS businesses,” said Walter Buckley, Actua’s Chief Executive Officer. “Under the strong leadership of CEO Scott Burns, we have transformed GovDelivery into a valuable, high growth company, and are confident that the company will continue its impressive growth trajectory. Since our acquisition of the business in 2009 for $20 million, GovDelivery has assembled a first-class management team and built out an industry-leading platform for digital government communications with a strong competitive moat. Through the execution of a highly effective growth strategy, GovDelivery has increased revenues by nearly 600 percent.”
Upon completion of the transaction, Actua expects to realize net cash proceeds of approximately $132 million. A portion of the proceeds will be held in escrow and will be subject to potential indemnification claims. Actua does not expect to owe any non-reimbursable income taxes in connection with the transaction. Actua intends to use its proceeds from the transaction to enhance shareholder value, remaining focused on building our leading vertical cloud businesses and repurchasing shares.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Community Bank System (CBU) to Acquire Merchants Bancshares (MBVT) in ~$304M Deal
- Inovio Pharma (INO) Announces FDA Clinical Hold Placed on Proposed VGX-3100 Phase 3
- SS&C Technologies (SSNC) Enters Agreement to Acquire CRM Solutions Provider Salentica
Create E-mail Alert Related CategoriesCorporate News, Guidance, Hot Corp. News, Management Comments, Mergers and Acquisitions, Private Equity, Spinoffs, Trading Halts
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!