Indus International, Inc. and Vista Equity Partners announced they have entered into a merger agreement under which Indus will be acquired by an affiliate of Vista in an all-cash transaction valued at approximately $240 million.
Upon completion of the merger, Vista intends to combine Indus with MDSI Mobile Data Solutions Incorporated, a Vista portfolio company and a provider of enterprise mobile workforce management software. The stockholders of Indus, subject to customary closing conditions, will receive $3.85 in cash in exchange for each share of Indus stock.
"The combination of these two industry leaders is a game-changing event," said Greg Dukat, president and CEO of Indus. "Together our products epitomize the Service Delivery Management philosophy, combining the functionality of best-of-breed enterprise asset management, field service management and customer management applications, to help service delivery organizations optimize interrelated business processes. Along with our emerging strength in the commercial client market, the combined company’s client base will include five of the top 10 cable companies and 18 of the top 20 utility companies in North America, as well as some of the world’s largest telecommunications companies. The combined footprint of Indus and MDSI will create the most attractive suite of products for the market."
The board of directors of Indus has unanimously approved the merger agreement and recommended that the stockholders vote in favor of it. Indus will hold a special meeting of stockholders to approve the merger, where a majority of the outstanding shares of Indus are required to approve the offer in order for the transaction to proceed. The closing is subject to customary closing conditions, including antitrust clearances. The transaction is expected to close within the next 90 days.
Credit Suisse has acted as financial advisor to Indus for this transaction.