Progress Software Corporation (NASDAQ: PRGS) and IONA Technologies plc (NASDAQ: IONA) are going to see active trading today. Progress is acquiring IONA in a cash buyout of $162 million and approximately $106 million net of cash and marketable securities reported on March 31, 2008. This will bring a cash buyout price of $4.05 per share for IONA holders.
The offer price per share is approximately 16% over the average price for IONA shares over the six months prior to the offer period announced by IONA on February 8, 2008. Unfortunately, the 52-week trading range is $2.01 to $6.28.
IONA Technologies’ board of directors unanimously approved the merger and each IONA Technologies director has entered into an agreement to vote in favor of the transaction. The merger is subject to regulatory approval in the US and in Ireland and is also subject to IONA shareholder approval. Once approved, the merger is expected to close in Q3-2008.
Progress Software is a global supplier of application infrastructure software used to develop, deploy, integrate and manage business applications. IONA Tech is an established supplier of software integration technology. The companies have both signed a definitive agreement to further the merger. IONA is based in Dublin, Ireland, so it looks like we have yet another cross-border tech and IT merger.
IONA shares are trading up 9.4% at $3.94 in pre-market trading.
Jon C. Ogg
June 25, 2008
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