Vision Solutions Inc., a portfolio company of private equity firm Thoma Bravo, has agreed to buy recovery software provider Double-Take Software Inc. The deal is valued at $242 million in cash, or $10.55 per share (21% premium to closing price on last day of trading before Double-Take said it was considering alternatives).
Double-Take Software, Inc. (DBTK) , a leading provider of recovery solutions, today announced that on May 17, 2010, it entered into a definitive merger agreement to be acquired by Vision Solutions, Inc., a portfolio company of Thoma Bravo, LLC, in a transaction with a net offer value of approximately $242 million. The Double-Take Board of Directors unanimously approved the agreement and has recommended the approval of the transaction to Double-Take’s stockholders.
Under the terms of the agreement, Double-Take stockholders will receive $10.55 in cash for each share of Double-Take common stock they hold, representing a premium of approximately 39% and 21% to Double-Take’s enterprise value and closing share price of $8.71, respectively, on April 9, 2010, the last business day prior to Double-Take’s announcement that its Board of Directors was considering indications of interest to acquire the Company.
“The board of directors of Double-Take, working with our legal and financial advisors, has been reviewing strategic alternatives for the company for the past several months. During that time, we have had the opportunity to share the Double-Take story and this transaction represents the successful conclusion of that process. Our board of directors and the management team are extremely pleased to announce this transaction and look forward to developing and supporting innovative recovery solutions for our clients globally,” said Dean Goodermote, Chairman, President and CEO of Double-Take.
“The offer for Double-Take Software underscores our focus to provide customers with the best information availability products and the most exceptional support and service in the industry,” said Nicolaas Vlok, president and CEO of Vision Solutions. “Double-Take has built a strong worldwide information availability business, and we are excited to have its world-class employees, customers and partners join the Vision family. With our expanded resources and scale, we will increase our ability to innovate and be the solution provider our customers can count on for their information availability needs.”
The transaction is subject to customary closing conditions, including the expiration or earlier termination of the Hart-Scott Rodino waiting period and the approval of Double-Take stockholders. The transaction is not subject to a financing condition, and debt commitments for the merger consideration have been received by Vision Solutions. Double-Take expects the transaction to close in the third quarter of 2010.
BofA Merrill Lynch and Thomas Weisel Partners LLC are serving as financial advisors to Double-Take Software. Hogan Lovells US LLP is serving as legal counsel to Double-Take Software. Kirkland & Ellis, LLP is serving as legal counsel to Vision Solutions. Jeffries & Company is providing the financing for Vision Solutions.
About Double-Take Software, Inc.
Headquartered in Southborough, Massachusetts, Double-Take(R) Software is a leading provider of affordable software for recoverability, including continuous data replication, application availability and system state protection. Double-Take Software products and services enable customers to protect and recover business-critical data and applications such as Microsoft Exchange, SQL, and SharePoint in both physical and virtual environments. With its unparalleled partner programs, technical support, and professional services, Double-Take Software is the solution of choice for more than nineteen thousand customers worldwide, from SMEs to the Fortune 500. Information about Double-Take Software’s products and services can be found at www.doubletake.com.
About Vision Solutions, Inc.
Vision Solutions, Inc. is a leading provider of high availability, disaster recovery and system management solutions for IBM Power Systems(R).. Vision Solutions supports its worldwide customers in achieving their business goals through its leading-edge technologies and its global network of partners. A portfolio company of Thoma Bravo, LLC, Vision Solutions is headquartered in Irvine, California with offices worldwide. For more information, visit www.visionsolutions.com.