ESW reaches 90% of SLI Systems

ESW reaches 90% of SLI Systems, moves to compulsory acquisition

By Jenny Ruth

Dec. 19 (BusinessDesk) - ESW Holdings says it has secured acceptances for more than 90 percent of SLI Systems and is moving to compulsorily acquire the remainder in its $41.4 million takeover offer.

Texas-based ESW launched a full takeover bid for SLI in October after locking up 51 percent of the company’s shares through agreements with 18 of SLI’s 1,500-odd shareholders.

SLI provides e-commerce services to retailers on a software-as-a-service basis. ESW offered 65 cents per share for the business, significantly above the 30 cents the shares were trading at before the offer.

In mid-November, independent valuer Northington Partners valued the shares between 37 and 53 cents and called the ESW offer “compelling.” SLI’s committee of independent directors also unanimously recommended shareholders accept the offer.

Still, the outcome will be disappointing to those investors who participated in SLI’s initial public offer in May 2013 and paid $1.50 for their shares.

(BusinessDesk)

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