MONTREAL - mdf commerce inc. (TSX:MDF), a prominent SaaS provider in digital commerce technologies, has announced an agreement to be acquired by KKR, a global investment firm, in an all-cash transaction valued at C$255 million. According to the terms of the deal disclosed on Monday, mdf commerce shareholders will receive C$5.80 per share, which is a 58% premium over the March 8, 2024 closing price on the Toronto Stock Exchange.
This transaction will provide mdf commerce shareholders with immediate liquidity and a certain value for their shares. The Board of Directors of mdf commerce has unanimously recommended that its shareholders vote in favor of the acquisition, which is expected to be completed in the second quarter of 2024, subject to shareholder and regulatory approvals.
KKR's acquisition strategy involves the continued growth of mdf commerce, aiming to establish it as a leading enterprise software platform. The company's eProcurement platform is already a significant player in North America, serving over 6,500 government agencies and more than 650,000 suppliers in Canada and the United States.
The transaction is supported by fairness opinions from Scotiabank (TSX:BNS) and Desjardins Capital Markets, which have both stated that the consideration is financially fair for the shareholders.
Upon completion, mdf commerce will become a private entity, and KKR plans to introduce an equity ownership program for all employees to partake in the company's ownership benefits. This move aligns with KKR's history of investing in software businesses and its philosophy of fostering employee engagement as a cornerstone for building stronger companies.
The agreement also includes a commitment from KKR to support the existing management team, led by President and CEO Luc Filiatreault, to drive mdf commerce's growth and build a global leader headquartered in Quebec.
The information in this article is based on a press release statement.
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