Target: Comverge Inc.
Price: $49 million
Sponsor: H.I.G. Capital
The publicly traded energy management company Comverge Inc., which has been exploring strategic alternatives for more than a year, said March 26 that it had agreed to be taken private by H.I.G. Capital in a $49 million cash deal. The $1.75 per share offer price is a 7 percent discount to Comverge’s market close of $1.88 on its last day of trading before the deal was announced.
Comverge has been seeking additional capital financing and has explored a variety of financing and strategic alternatives since the fall of 2010.
The company—which works with grid operators, utilities and large consumers to lower energy use during expensive peak hours—said it can solicit alternative proposals from third parties during a go-shop period of 30 days. Affiliates of H.I.G. Capital will provide debt financing of $12 million to Comverge. The company said the financing was not contingent on the closing of the acquisition by H.I.G. Capital.
Miami-based H.I.G. Capital is a multi-strategy buyout firm, including growth equity and distress. Comverge shares have lost about 57 percent of their value in the last year.