YuMe (YUME) Sets up Special Committee After Holder Seeks to Acquire Company

September 14, 2016 7:48 AM EDT

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YuMe (NYSE: YUME) in an SEC filing confirmed that it recently received an indication of interest in acquiring the Company from its second largest shareholder, AVI Partners, LLC.

The Company’s Board of Directors (the “Board”) is carefully considering this indication of interest. The Board has established a special committee of independent directors and is in the process of selecting a financial advisor.

The Company currently has no further comment on this matter.

Earlier AVI disclosed:

AVI Partners (together with its affiliates, “AVI”) recently notified the Issuer that, subject to AVI’s completion of confirmatory due diligence, AVI is prepared to offer to acquire all of the outstanding Shares of the Issuer at a purchase price in the range of $4.52 to $5.22 per Share (the “Offer”), subject to (a) the Issuer having at least $63 million of cash and cash equivalents at the time of any such transaction; (b) the completion of due diligence, including financial, legal, accounting and tax diligence; (c) the negotiation of a satisfactory acquisition agreement with customary terms and conditions; and (d) the negotiation of a satisfactory management agreement to eliminate unnecessary operating costs in an amount not less than $10 million.

AVI and the other Reporting Persons currently intend to further discuss and negotiate the Offer with the Board and management of the Issuer and may enter into a customary confidentiality agreement and other customary documentation related to the transaction. AVI reserves the right to revoke, amend or modify the Offer, including the price, conditions and others terms of the Offer.



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