Comverge Inc. (NASDAQ: COMV), a maker of intelligent control systems for electricity utilities and their customers, has agreed to be taken private by an affiliate of private equity firm H.I.G. Capital LLC for a price of about $49 million, or $1.75/share. Shares closed Friday at $1.88.
The company didn’t have any choice:
The transaction addresses the risks associated with the Company’s liquidity position, provides for our financial viability going forward and allows Comverge to continue to execute on its business plan with the financial backing of H.I.G. Capital.
Shareholders won’t be happy with these deal, and the shareholder law firms are already lining up. But Comverge may have had no choice — the company’s auditors released a “going concern” letter about 10 days ago and the company said it had received default notices from some lenders.
Shares are down about -7.5% at $1.74.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.