Majesco, which has closed yesterday at Rs.382.05, opened itself at the 5% UC of the day at Rs.401.15, where it currently remains frozen. Over 10 lakh buy bids remain on the counter.
The stock price hit the roof on news that the company is being acquired by Thoma Bravo, a private equity firm focused on the software and technology services sectors, in a transaction valuing the company at $594 million.
Following the closing of the transaction, Majesco will operate as a privately-held company.
Under the terms of the agreement, all Majesco shareholders will receive $13.10 in cash for each share of Majesco held, a price representing a premium of approximately 74% over Majesco’s average closing price during the 30-trading day period ended July 17, 2020.
Upon completion of the transaction, Majesco expects to continue to operate under the leadership of CEO Adam Elster and the existing Majesco leadership team.
The gross value to be received by the company for its stake in US Subsidiary in the Merger is US$ 420.66 million, compared to the total market capitalisation of the Company in India of US$ 141 million (as per closing price of equity shares of the Company quoted on NSE on the last trading day prior to the announcement of the Merger and at the exchange rate of INR 75/ US$). This implies a premium of 198.34% over the market capitalisation of the company in India.
The gross value to be received by the Company for its stake in US Subsidiary in the Merger is US$ 420.66 million, compared to the total investments made by the Company in US Subsidiary of US$ 68.67 million, to date.