Boston, MA 04/08/2014 (wallstreetpr) – Vocus, Inc. (NASDAQ:VOCS) is a $387 million organization which provides cloud marketing solutions. The company has long been known to be looking for buyers to takeover its operations, and an opportunity eventually showed up.
The company announced a deal with private equity company GTCR, a deal which will take the company private for $447 million. Following the GTCR bid, analysts believe that the deal is fair enough that some interested bidders might keep away. The companies agreed to a termination fee amounting to $13 million.
The difference
The deal to take Vocus, Inc. (NASDAQ:VOCS) private comes at a premium price. By offering to pay $18 per share of Vocus, GTCR priced the stock 48 percent above the closing price Friday. This offer will not only keep away rival bids, but makes the deal almost certain to sail through shareholder vote. As part of the acquisition deal, GTCR will also purchase Series A preferred stock of Vocus for $77 million.
That Vocus decided to go private presents an opportunity for the company to sort out its various operation issues and come up with strategic approaches to attain growth. The peace of mind which comes with staying private will be very important in quick turnaround of the company.
Shares of Vocus, Inc. (NASDAQ:VOCS) jumped to one-year high Monday and settled more than 47 percent above the previous closing. The stock was Nasdaq’s top percentage gainer in the last session.
Struggling business
In recent times, Vocus, Inc. (NASDAQ:VOCS) was seen shifting its business focus to serve mid-size companies. The company previously offered its cloud marketing solutions to small businesses. That attempted shift of business focus did not go down well with the company, given that its new target needed more sophisticated solution than it could provide. This acquisition deal is expected to help the company improve its product offering to mid-size clients.
The company provides social media marketing services, email marketing and a service for journalists.
