Vector Capital has acquired Quebec's 20-20 Technologies for $4 per share, or $77 million—a premium of 28% over 20's closing share price on April 3.
20-20 Technologies is a provider of computer-aided design, business and manufacturing software tailored for the interior design and furniture industries.
"Much has been done in the last 25 years to build 20-20 Technologies into what is now the world's leading provider of computer-aided design, business and manufacturing software tailored for the interior design and furniture industries," says Jean-Francois Grou, the CEO of 20-20. "We are pleased to be partnering with Vector to leverage their global capabilities, industry knowledge, and financial resources to further our shared long-term vision for the Corporation and benefit our customers."
"20-20 Technologies is a well-managed company with superior products, a strong development plan and a solid reputation for client service," adds Aalok Jain, a vice president with Vector. "We look forward to partnering with the Corporation’s management and employees to continue its strategy and solidify its place as global leader in the industry."
"20-20 Technologies has all the characteristics we consider when making an investment and exemplifies Vector’s strategy of partnering with management to transform leading technology companies," continues Amish Mehta, a partner at Vector. "Using 20-20 as a platform investment, we intend to continue investing in innovative solutions for interior design and furniture customers and expand 20-20’s presence in new markets organically and through acquisitions while maintaining a strong presence in Québec where the technology was developed."
The transaction has been unanimously approved by the Board of Directors of 20-20 Technologies after having received the unanimous recommendation of the Special Committee and with the benefit of advice from its legal and financial advisors.
"The decision to initiate a strategic review process was a difficult one to make, but this outcome is the right one for all the stakeholders of the Corporation," affirms founder of 20-20 and executive chairman of the board, Jean Mignault. "Our vision from the outset has always been to build a software platform even more firmly establishing 20-20 Technologies as the worldwide leader in our vertical industry. Vector shares our vision for the future and therefore we strongly support the proposed transaction."
It is anticipated that the acquisition will be completed in September 2012.
With over $2 billion of capital, Vector Capital is a global private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses.