Plato Learning Inc. has made an unsolicited bid for educational software company Renaissance Learning Inc., topping an earlier bid by the private equity firm Permira, Reuters reported. Plato has offered $15.50 per share in cash, which is a 7% premium on Renaissance Learning’s closing price Wednesday. Permira offered $14.85 per share last week, or $440 million.
(Reuters) – Renaissance Learning Inc. (RLRN.O), which makes education software for schools, said it got an unsolicited bid from Plato Learning Inc worth $15.50 a share in cash, topping a bid by private equity firm Permira [PERM.UL] last week.
The $15.50 a share offer price is 7 percent more than Renaissance Learning’s closing price on Wednesday and 4 percent above Permira’s $14.85 a share offer for the company.
Renaissance said it believes Plato’s proposal could be expected to lead to a “superior proposal” under the terms of the agreement with Permira, but it continues to recommend shareholders vote for Permira’s $440 million offer for the company.
The company also said it got a letter from Permira’s counsel asserting that Plato’s bid is not a proposal that could be determined to lead to a “superior proposal.”
Shares of Wisconsin-based Renaissance closed at $14.52 on Wednesday on Nasdaq. (Reporting by Abhishek Takle in Bangalore; Editing by Carol Bishopric)