JMI, Carlyle Take Gemcom Private
The two private equity firms acquired the mining software maker for $180 million, or $2.90 a share
May 8, 2008
Private equity firms JMI Equity and The Carlyle Group agreed to agquire Vancouver-based Gemcom Software International
, the largest mining software maker, in a take private deal for about $180 million in cash, or $2.90 a share.In a press release Thursday, Gemcom said its board approved the deal, and will recommend shareholders vote in favor of the pact. The deal, expected to close in July, represents a 16% premium over Gemcom's weighted average closing price for the last 45 trading days. The $163.9 million market-cap Gemcom has 19 global locations serving clients in 90 countries.
In March, U.K.-based investment firm Pala Investments Holdings acquired 1.1 million Gemcom common shares, boosting its stake to 6.3 million shares, or about 12%.
JMI Equity, a software and business services-focused firm based in Baltimore and San Diego, has about $1.3 billion of committed capital under management. Goodwin Procter and Stikeman Elliott served as legal advisors to JMI.
The Carlyle Group, based in New York with about $81.1 billion under management, received legal advice from Latham and Watkins.
Shares of Gemcom, traded on the Toronto Stock Exchange, were listed at $3.06, up 26 cents, or 9%, near the closing bell.
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