Megasoft completes acquisition of US firm BCGI

Megasoft completes acquisition of US firm BCGI
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First Published: Fri, Aug 31 2007. 02 28 PM IST
Updated: Fri, Aug 31 2007. 02 28 PM IST
PTI
Mumbai: Software solutions company Megasoft Ltd said on 31 August it has completed the acquisition of US-based, Nasdaq-listed company, Boston Communications Group Inc for $65 million.
The acquisition followed completion of the tender offer by its wholly-owned arm, Tea Party Acquisition Corp, for all outstanding shares of BCGI at $3.60 a share.
According to US Securities and Exchange Commission, a tender offer is a broad solicitation by a company or a third party to purchase a large percentage of a companys shares or units for a limited period of time.
After the tender offer which expired on 29 August, over 1.57 crore shares, or 88.2% of BCGI’s issued and outstanding shares were validly tendered.
The $3.60 per share price represented a premium of around 120% over its average closing price during the 30 days ended 6 July.
“Megasoft intends to exercise its option under the merger agreement to purchase newly issued bcgi shares in order to ensure ownership of at least 90% of the aggregate shares outstanding to complete the short-from merger,” the company said in a filing to the Bombay Stock Exchange.
Following the acceptance for payment of shares in the tender offer and completion of the transactions contemplated in the merger agreement, BCGI will become a wholly-owned subsidiary of the Megasoft.
Earlier on 11 July, Megasoft and bgci had reached a definitive merger agreement regarding the acquisition for an expected aggregate purchase price of $65 million.
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First Published: Fri, Aug 31 2007. 02 28 PM IST