20-20 Technologies Inc. announced it has entered into a definitive arrangement agreement to be acquired by an affiliate controlled by Vector Capital Corp., a global private-equity firm specializing in the technology sector.
The agreement represents the culmination of a strategic review process initiated by the board of directors' special committee to review strategic and financial alternatives that enhance shareholder value. Under the terms of the agreement, Vector has agreed to acquire all of 20-20 Technologies' issued and outstanding shares for consideration of $4.00 in cash per share, representing total equity value, on a fully diluted basis, of approximately $77 million.
Jean Mignault, founder of 20-20 Technologies and executive chairman of the board, will sell approximately 80 percent of his interest in the company for the cash consideration pursuant to the arrangement and will receive an equity interest of up to 9.9 percent in the acquiring company for the remaining 20 percent of his interest in 20-20 Technologies. Mignault will continue as board member and serve as chief of strategic direction. It is anticipated that the plan of arrangement, if approved by 20-20 shareholders, will be completed shortly after a special meeting expected to be held in September.
Jean-Francois Grou, Chief Executive Officer of 20-20 Technologies, said: "Much has been done in the last 25 years to build 20-20 Technologies into what is now the world's leading provider of computer-aided design, business and manufacturing software tailored for the interior design and furniture industries. We are pleased to be partnering with Vector to leverage their global capabilities, industry knowledge and financial resources to further our shared long-term vision for the Corporation and benefit our customers."
Amish Mehta, a partner at Vector, said: "20-20 Technologies has all the characteristics we consider when making an investment and exemplifies Vector's strategy of partnering with management to transform leading technology companies. Using 20-20 as a platform investment, we intend to continue investing in innovative solutions for interior design and furniture customers and expand 20-20's presence in new markets organically and through acquisitions while maintaining a strong presence in Quebec where the technology was developed."
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