Private equity firm Birch Hill Equity Partners has agreed to acquire Canadian IT services company Softchoice Corporation in a take-private deal that values the business at C$20 per share, or C$412m ($402m).
The offer represents a 24 per cent premium to the company’s closing price on April 22 and a 42 per cent premium to its average closing price over the past 60 days. It has been unanimously recommended to shareholder by Softchoice’s board of directors.
Softchoice provides design , asset management and cloud services to public and private businesses.
Birch Hill partner Pierre Schuurmans said, “Softchoice is a Canadian success story with a long history of creating value for its customers, employees, and shareholders.
“We look forward to working with David and his management team as they continue to build Softchoice into one of North America’s leading technology solutions providers.”
Birch Hill, which is based in Toronto, has C$2bn under management and 20 portfolio companies, which have combined revenues of C$4.7bn.
The firm targets mid-market companies valued at C$30m to C$600m.
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