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E2open makes unsolicited offer for Amber Road
Posted on Tuesday, 13 February 2018 12:50
Shares in Amber Road jumped 23.4 per cent yesterday on news of a takeover approach that would value the cloud-based global trade management (GTM) software developer at about USD 285.00 million.
The designer of products to automate import, export and logistics processes announced it has rejected an unsolicited bid of USD 10.50 apiece from E2open and Insight Venture Partners.
Its board unanimously agreed a takeover would not be in the best interests of shareholders and noted it had intended to respond privately ahead of the 16th February deadline.
However, Amber Road has had to react publicly to the approach after E2open and Insight bypassed the company and went straight to shareholders with their non-binding proposal.
At USD 10.50 per share, the suitors are giving existing investors a chance to cash in their stocks for a 52.0 per cent premium to the unaffected market price.
It is also 41.0 per cent higher than the 30-day average and 33.0 per cent up on Amber Road’s two-year trading value.
Furthermore, as E2open is backed by financial sponsors with significant capital commitments, it means the all-cash deal would not be conditioned upon receipt of debt financing.
Amber Road provides cloud-based software, including modules for logistics contract and rate management, international trade compliance and supply chain collaboration with overseas factories, among others.
E2open believes that joining its own manufacturing and distribution network with that of the New Jersey-headquartered company will help clients operate their end-to-end supply chains from one place in the cloud.
In addition, the acquisition will extend the unlisted software provider’s platform to include the considerations of tariffs, regulations and total landed costs.
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