Extensity, and Systems Union have reached agreement on the terms of recommended proposals for the cash acquisition of Systems Union. Under the Proposals, Systems Union Shareholders will receive 215 pence per share, a premium of approximately 21.6 per cent. Extensity, is a Golden Gate Capital Company and the transaction follows hard on the heals of the Venture Capitalists acquisition of Geac.
Approval of the Proposals will be sought from Systems Union Shareholders in June 2006. David Dominik, a Board Member of Extensity, said,"The acquisition of Systems Union is an important part of Extensity's aim to become the leading financial and performance management software provider focused on the mid-market. Commenting on the Proposals, Paul Coleman, Chief Executive Officer of Systems Union, said, "This marks a considerable step change for the global operations of Systems Union as it becomes part of a substantial merged group with combined revenues in excess of US$500 million. The merged operations of Systems Union and Extensity, under the financial guidance of Golden Gate Capital, should provide enhanced opportunity and progression for the customer base, channel partners, employees and management teams of both companies."
The transaction also marks the end of a six-year period during which Systems Union has seen considerable change and improvement to its trading performance, culminating in today's announcement.
