Q9 agrees to private equity takeover
Q9 3-month TSX chart
Q9 Networks Inc. said Monday it has agreed to a friendly takeover bid from Boston-based private equity firm ABRY Partners LLC that values the company at $361 million.
In a release issued prior to the opening of stock markets, Q9 said ABRY is offering $17.05 per share in cash for the company.
Q9 rose $3.71, or more than 28 per cent, to close at $16.73 on the TSX.
A Toronto-based provider of outsourced information technology operations, Q9 said the offer price includes a 38 per cent premium over its 30-trading-day volume weighted average closing price.
"ABRY is one of the most experienced private equity firms in the media, communications, and information industry," said Q9 chief executive Osama Arafat and Paul Sharpe, the company's president and chief operating officer, in a release.
"We believe they are the right partner to continue our aggressive growth plans while providing outstanding service to our valued customers," they said.
Q9 has agreed to pay a break-up fee of at least $6.3 million if it winds up terminating its deal with ABRY in favour of another buyer.
ABRY will pay a $18 million "reverse break fee" if it doesn't go through with the takeover.
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