Extensity announced that it has reached agreement with Systems Union Group plc ("Systems Union") on the terms by which Extensity would acquire Systems Union. Under the agreement, Extensity will pay 215 pence per share in cash to Systems Union stockholders pursuant to a scheme of arrangement under section 425 of the Companies Act. The transaction is subject to certain conditions, including regulatory clearance, approval by the High Court in England and shareholder approval. The Systems Union Board of Directors intend unanimously to recommend that shareholders vote for the transaction, and have undertaken to vote their shares, representing approximately 10.7 percent of the ordinary share capital of the company, in favor of the scheme. Other shareholders have provided undertakings with respect to approximately 21.5 percent of the share capital and letters of intent with respect to approximately 17.9 percent of the share capital of the company to vote in favor of the scheme. In total, Extensity holds undertakings and letters of intent representing approximately 50.1 percent of System Union's existing issued share capital. The transaction is expected to close in 90 to 120 days.
Commenting on the proposed acquisition, Mark Smith, the CEO and EVP of Research for Ventana Research said, "Extensity is a key player in the financial management and performance management market and through this move their position and opportunity as global provider will continue to expand with more depth and breadth and expanded customers, products and operations in Europe, Asia Pacific and North America."
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