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724 Solutions - 724solutions.com
Privately held now.
Canadian company accepts Austin Ventures' higher offer
Austin Business Journal - March 14, 2006
Austin Ventures LP boosted its buyout offer for Toronto's 724 Solutions Inc., and the Canadian company accepted it.
In late February, Austin Ventures proposed buying the rest of the shares of 724 Solutions Inc.'s common stock that it doesn't already own for $3.07 each, or nearly $17 million. That offer was rejected. Now, the offer has been raised to $3.34 per share, or more than $18.3 million, and 724 Solutions has taken it.
724 Solutions' stock has been trading around $3.30 per share.
If a definitive agreement on the revised proposal isn't reached, the offer will expire April 6, according to a 724 Solutions news release.
Austin Ventures, a venture capital firm based in Austin, is the largest shareholder of 724 Solutions.
Affiliates of Austin Ventures own 547,854 common shares of Toronto-based 724 Solutions (NASDAQ: SVNX, TSX: SVN) and hold about $8.9 million worth of notes that can be converted to another 2.9 million common shares. Furthermore, partners with Austin Ventures own 5,162 common shares of 724 Solutions.
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