Actua Corp. (ACTA) to Sell GovDelivery in $150M Deal
- Nasdaq leads Wall St lower after robust November jobs data
- U.S. job juggernaut rolled on in November; nonfarm payrolls up 263,000
- We are selling risk rallies - Bank of America's Hartnett
- Asana (ASAN) stock hit with two downgrades after earnings; shares tumble 18%
- Analysts defend Zscaler (ZS) as shares fall despite earnings and guidance beat
News and research before you hear about it on CNBC and others. Claim your 1-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
- LendingClub (LC) to acquire $1.05 billion personal loan portfolio
- Group 1 Automotive (GPI) Acquires Anaheim, California Mercedes-Benz Dealership
- BorgWarner (BWA) Acquires Drivetek AG
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!