Hey...Thomson to buy NewsEdge in $43 million deal
(UPDATE: All figures U.S.)
Tuesday August 7, 9:15 am Eastern Time
TORONTO, Aug 7 (Reuters) - Canadian electronic publisher Thomson Corp. (Toronto:TOC.TO - news) said on Tuesday it will buy NewsEdge Corp. (NasdaqNM:NEWZ - news) in an all-cash deal worth $43 million that expands its position in the business news and corporate market segments.
Thomson said in a release a newly created subsidiary will pay $2.30 a share -- a 91 percent premium -- to buy all of the common shares of the U.S.-based company that disseminates news from thousands of sources.
The company said the deal, expected to close in the second half of the year, is contingent on tendering a majority of NewsEdge shares and other regulatory requirements. All of the company's directors, certain executive officers and a significant shareholder of NewsEdge have already pledged to tender their shares, it added.
Thomson said the offer will be followed by a back-end merger of the subsidiary, and that NewsEdge will continue to be run by its present management.
NewsEdge, which has traded in a 52-week range of 62.5 cents and $3.00 on Nasdaq, last traded on Monday at $1.20.
($1 equals $1.53 Canadian)
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