Vista To Buy SumTotal

(Reuters) – SumTotal Systems Inc (SUMT.O) agreed to be acquired by Vista Equity Partners for $160 million and terminated its previous deal with Accel-KKR, putting an end to a long-drawn bidding war between the two private equity firms.

SumTotal, which makes learning performance and compensation management software, said it paid a breakup fee of $6.67 million to Accel-KKR.

Certain shareholders of SumTotal were concerned over the breakup fee and had cautioned the company against accepting offers containing such a clause.

Discovery Group, which holds about 10 percent in SumTotal, had told Reuters that it wanted the fee amount to go to shareholders instead. [ID:nBNG365669]

Accel-KKR and SumTotal had amended their merger agreement on May 19, under which the private equity firm had offered $4.80 a share for the company. [ID:nBNG490421]

Vista first offered to buy SumTotal in April for $3.25 per share, but was forced to raise its offer thrice in the past month.

Today’s deal of $4.85 a share is yet to be approved by SumTotal’s shareholders, the company said in a statement.

SumTotal shares, which were trading at $2.01 in April before the bidding war began, fell 4 cents to $4.85 in pre-market trade. (Reporting by Deepti Govind in Bangalore; Editing by Anil D’Silva)