This Week
  • Arts and cultural groups are using a range of strategies to draw younger people.

  • ConServe does collection work for government, education and business.

  • Prominent cancer surgeon to lead URMC's department of surgery.

  • Donald Mead draws on his experience in leading furniture maker Gunlocke Co.

  • Anne Gabel, 27, owns MJ Gabel Diamond and Jewelry Buyers.

  • The RBJ 75 supplement presents a list of the 75 largest private-sector employers.

Veramark terminates merger pact, agrees to new acquisition deal

Rochester Business Journal
June 17, 2013

Veramark Technologies Inc. has terminated its merger agreement with Varsity Acquisition LLC and All Big Ten Holdings Inc., announced in early May, in favor of a more lucrative deal with Hubspoke Holdings Inc. and TEM Holdings Inc.

The telecom expense management company made the move after a special committee of its board of directors, consisting solely of independent directors, agreed the Hubspoke deal was superior to the one with Varsity, Veramark officials said.

Under the new deal, Hubspoke and TEM have offered to purchase Veramark for $1.18 a share in cash, compared with 98 cents a share in the Varsity deal. Based on 10,791,406 shares outstanding on March 31, the Hubspoke deal would be worth roughly $12.7 million, compared to roughly $10.6 million in the deal with Varsity.

Veramark was able to obtain the deal with Hubspoke and TEM thanks to a 45-day-go-shop right that was permitted under the Varsity merger agreement. Veramark will owe Varsity a $500,000 termination fee.

The transaction between Veramark and Hubspoke is expected to close in the third quarter.

(c) 2013 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.
 


What You're Saying 

There are no comments yet. Be the first to add yours!

Post Your Own Comment

 
Username:
Password:

Not registered? Sign up now!
 

To Do   Text Size
Post CommentPost A Comment eMail Size1
View CommentsView All Comments PrintPrint Size2
ReprintsReprints Size3
  • E-mailed
  • Commented
  • Viewed
RBJ   Google