Wednesday, May 27, 2009

Vista to buy SumTotal after all

In what appears to be the end of a bizarre auction process, Vista Equity Partners has triumphed, outbidding Accel-KKR for SumTotal Systems. The price ended up at $160 million or $4.85 per share, a respectable increase from Vista's original $3.25 per share offer. Accel-KKR can hardly be described as a loser though, after somehow convincing SumTotal's nitwit board of directors to double the break-up fee in their last bid to $6.67 million. I can imagine the Accel-KKR directors holding up the cheque saying, "Well lads, looks like we lost! The beer's on me!"

1 comment:

Anonymous said...

This was an absolutely bizarre series of events. I couldn't have scripted it to be any more entertaining. You really have to ask yourself who is the winner in this auction. SumT? Accel? Vista? Maybe it's the party that received the best cash on cash return.