Shares of Boston Communications Group Inc. skyrocketed after Indian computer company Megasoft Ltd. said it will acquire the struggling developer of billing software for roughly $65 million.
Megasoft’s Tea Party Acquisition Corp. unit will offer $3.60 per share of BCGI common stock on or before Aug. 1, the companies said. The boards of both companies have approved the deal, which is contingent on 83% of BCGI’s shares being tendered at Megasoft’s price.
Indeed, the proposed price marks a 20% increase over the average closing share price during the past 30 days, the companies noted. Investors pounced following the announcement, sending shares up $1.39, or 70%, to $3.38.
BCGI earlier this year announced plans to lay off 93 staffers, or 21% of its workforce, following a decision by Sprint Nextel Corp.’s Boost Mobile L.L.C. sub-brand to drop BCGI as a vendor. The company also lost two top executives late last year in the wake of a national stock-options scandal that ensnared dozens of tech companies.
“We are extremely excited about this transaction and the resulting benefits to our shareholders, customers and employees,” BCGI CEO Joseph Mullaney said. “Our shareholders receive immediate and substantial value, with the offer representing a very significant premium over recent trading prices.”
The deal, which is subject to customary regulatory approvals, is slated to close in the third quarter.
Indian firm to snap up BCGI for $65M
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