Keane Goes Private

Keane (KEA-NYSE) is being acquired by private Caritor, Inc., a privately held and VC-backed provider of IT services, in an all-cash purchase price of approximately $854 million.  Keane’s common stockholders will receive $14.30 per share in cash (19% premium, but well under the $16.50 yearly high).  The resulting private company is anticipated to have annual revenues over $1 billion and more than 14,000 professionals.

Keane’s Board of Directors voted that this transaction is in the best interest of Keane’s shareholders.  Members of the Keane family and affiliated entities (representing approximately 20 percent of the current shares outstanding) have committed to vote their Keane shares owned by them in favor of the merger.  The transaction is expected to be completed in Q2 2007, subject to receipt of Keane stockholder approval and customary regulatory approval; the deal is being financed thru CVCI and debt financing provided by Citigroup, UBS and Bank of America.

Citigroup and UBS acted as financial advisors to CVCI and Caritor in connection with the transaction. Morgan Stanley & Co. Incorporated acted as financial advisor to the Board of Directors of Keane.

Jon C. Ogg
February 7, 2007