Thursday, IONA Technologies Plc (IONA) announced that its shareholders voted in favor of the resolutions needed to approve the proposed acquisition of the company by Progress Software Corp. (PRGS).
The Dublin, Ireland-based company said that there were two ordinary and three special resolutions considered at the extraordinary general meeting. The ordinary resolution approves the scheme of the acquisition and authorizes the directors to take necessary actions to put the scheme into effect.
The special resolutions that were approved by the shareholders included calling off the cancellation of shares, the approval to authorize the company's directors to issue relevant and to apply the reserve in the books resulting from the cancellation in paying up in full at par the company's new shares.
The Board also unanimously recommended and voted in favor of the resolutions, which were approved by shareholders, the company said.
Progress Software has agreed to buy all the outstanding shares of IONA for $4.05 per share in cash, representing a total equity value of about $162 million and about $106 million net of cash and marketable securities reported on March 31. The offer price per share represents a 47.3% premium over the closing price of $2.75 for an IONA American Despositary Receipt or ADR share on Februray 7. The offer price per share is also a premium of about 16% over the average price for IONA shares over the six months prior to the offer period.
The company also said that on the closing of the transaction, which is expected to occur in September, IONA would become a wholly-owned subsidiary of Progress Software and IONA's shares would be delisted from both the Irish Stock Exchange and from Nasdaq.
IONA is currently trading at $3.98, up $0.03 or 0.76%.
PRGS is currently trading at $29.39, up $0.51 or 1.77%.
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