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Update: kneat.com to go Private in About C$650 Million Deal; Shares Up 18%

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(Updates shares in the first and last paragraphs)

kneat.com (KSI.TO) shares rose 18% on Monday after it entered into a definitive arrangement agreement with an affiliate of Thoma Bravo, L.P., whereby the purchaser will buy all of the issued and outstanding common shares of the company, subject to customary approvals, for about C$650 million.

Under the deal, shareholders of the company, other than any rollover shares, will receive C$6.50 cash per share, representing total equity value of about C$650 million, the company said. Kneat will become a privately held company upon completion of the deal.

The purchase price is a premium of about 20% to the closing price on June 5, the last trading day prior to the announcement. The break fee payable by the company is about C$22.6 million.

Thoma Bravo intends to speed-up Kneat's "pursuit of its mission to enable any regulated company to be confident it is developing, manufacturing, and delivering its products to the highest safety standard," the company said. Shares of the company are expected to be delisted from the TSX and the company will cease to be a reporting issuer in all applicable Canadian jurisdictions following deal completion.

Thoma Bravo and certain existing director and management shareholders of Kneat may elect to roll a portion of their equity into shares of the purchaser or an affiliate of the purchaser. Terms of any such rollover have not been negotiated, it added.

Shares of the company were last seen up $1.01 to $6.43 on the Toronto Stock Exchange.

Price: $6.43, Change: $+1.01, Percent Change: +18.54%

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