NEW YORK (Reuters) – SumTotal Systems Inc (SUMT.O) said on Monday its board determined that a sweetened $146 million buyout offer it received from private equity firm Vista Equity Partners was superior to the deal it agreed to with Accel-KKR.
SumTotal said its board of directors is not withdrawing, amending, qualifying or modifying its recommendation regarding the deal with private equity firm Accel-KKR, and is not making any recommendation now about the Vista proposal.
SumTotal, which makes employee-management software, said Vista’s latest offer of $4.50 per share was superior to the $3.80 per share it accepted last month from Accel-KKR.
The bid from Accel-KKR had trumped an earlier offer from Vista for $3.25 per share. Vista already owns 13 percent of SumTotal and is its largest shareholder.
Under the terms of its existing deal, SumTotal said it is obligated to negotiate in good faith with Accel-KKR for three business days to try to make adjustments to the agreement. (Reporting by Martinne Geller; Editing by Gary Hill)