ARI Network Services, Inc., a provider of SaaS, software tools and marketing services that help dealers, distributors and manufacturers Sell More Stuff!, has entered into a definitive agreement to be acquired by an affiliate of True Wind Capital Management, LLC, a San Francisco-based private equity firm focused on investing in leading technology companies.
Under the terms of the agreement, ARI shareholders will receive $7.10 in cash for each share of ARI common stock they own. The purchase price represents a premium of approximately 33 percent to ARI’s average closing price for the period of 60 trading days ending June 20, 2017. The all-cash transaction represents an enterprise value of approximately $140 million and has been unanimously approved by ARI’s Board of Directors.
“We are very excited to partner with the True Wind team. This transaction is the result of an extensive process, and we believe it represents a great outcome for our shareholders,” said Roy W. Olivier, ARI president and CEO. “The investment by True Wind positions ARI to accelerate our pace of innovation and better positions ARI to capitalize on future growth opportunities.”
“ARI is a market leader with an experienced management team. The Company’s mission-critical software, data and digital marketing solutions provide customers best-in-class technology to run their businesses,” said Adam Clammer, founding partner at True Wind Capital. “True Wind is excited to partner with ARI and its management team to continue to deliver innovative solutions and achieve growth potential.”
Closing of the deal is subject to customary closing conditions including the approval of ARI shareholders. The transaction is expected to close in the third calendar quarter of 2017.
Pacific Crest Securities and Houlihan Lokey are serving as financial advisors to ARI, and Godfrey & Kahn S.C. is serving as legal advisor to ARI. True Wind’s legal advisor is Kirkland & Ellis LLP.