Milwaukee-based ARI Network Services Inc. has agreed to be acquired for about $140 million in cash by an affiliate of San Francisco private equity firm True Wind Capital.
The purchase price is a 33 percent premium on ARI’s average closing price for the trailing 60 trading day period. The sales and marketing software company’s shareholders will earn $7.10 in cash per common share.
ARI’s board of directors has approved the transaction. The deal is expected to close in the third quarter, pending ARI shareholder approval and customary closing conditions.
True Wind is not expected to make any changes at ARI; the executive team and all 420 employees will remain in their roles and it’s business as usual at ARI, a spokesperson said.
“We are very excited to partner with the True Wind team. This transaction is the result of an extensive process, and we believe it represents a great outcome for our shareholders,” said Roy Olivier, president and chief executive officer of ARI. “The investment by True Wind positions ARI to accelerate our pace of innovation and better positions ARI to capitalize on future growth opportunities.”
True Wind Capital, which manages $560 million, invests in leading technology companies.
“ARI is a market leader with an experienced management team. The company’s mission-critical software, data and digital marketing solutions provide customers best-in-class technology to run their businesses,” said Adam Clammer, founding partner at True Wind. “True Wind is excited to partner with ARI and its management team to continue to deliver innovative solutions and achieve growth potential.”
ARI in November acquired Weston, Florida-based Auction123 for $10.3 million. The company was recently engaged in a proxy fight with private investment firm Park City Capital LLC, which sought to elect two of its own directors. At the annual shareholder meeting in January, ARI’s directors retained control. But the company revealed it spent about $200,000 on its efforts to quell the proxy contest and the integration of a new acquisition in its fiscal second quarter.
ARI reported fiscal 2016 revenue of $47.7 million.
