Megasoft to Acquire bcgi Transaction Valued at Approximately $65 Million
11 7월 2007 - 6:40PM
PR Newswire (US)
BEDFORD, Mass. and HYDERABAD, India, July 11 /PRNewswire-FirstCall/
-- Megasoft Limited (BSE Code No.: 532408) and Boston
Communications Group, Inc., (NASDAQ:BCGI) today announced a
definitive agreement for Megasoft Limited to acquire Boston
Communications Group, Inc., for $3.60 per share of bcgi common
stock, in cash, for an expected aggregate purchase price of
approximately $65 million. The $3.60 per share price represents a
premium of approximately 120 percent over bcgi's average closing
share price during the 30 days ended July 6, 2007. Under the terms
of the merger agreement, Tea Party Acquisition Corp., a
wholly-owned subsidiary of Megasoft, will commence a tender offer
to acquire all of the outstanding shares of bcgi common stock for
$3.60 per share in cash. The offer is expected to commence on or
before August 1, 2007, and will expire at midnight on the 20th
business day following and including the commencement date, unless
extended in accordance with the terms of the merger agreement and
the applicable rules and regulations of the Securities and Exchange
Commission ("SEC"). The Board of Directors of Megasoft and bcgi
have unanimously approved the definitive agreement. The Board of
Directors of bcgi recommends that shareholders tender their shares
in the tender offer. Members of bcgi's Board have agreed to tender
their shares in the offer. "We are extremely excited about this
transaction and the resulting benefits to our shareholders,
customers and employees," said Joseph Mullaney, chief financial
officer and acting chief executive officer of bcgi. "Our
shareholders receive immediate and substantial value, with the
offer representing a very significant premium over recent trading
prices. Our customers gain from the broadened product offerings and
combined technology resources of the two organizations, and our
employees benefit from the enhanced opportunities in an
organization poised to address a broad spectrum of industry and
subscriber needs." Mullaney continued, "We believe that the
combined organization offers bcgi considerable growth opportunities
that would be difficult to achieve without the synergies that exist
between the two companies. A standalone strategy for bcgi would
require the development of new revenue streams to replace the
decline in business from some of our tier one carrier customers,
which could result in future losses. We believe that Megasoft's
offer to purchase bcgi shares at a substantial premium over current
market prices is a more favorable and certain outcome for our
shareholders." "This transaction creates significant value for
Megasoft shareholders and expands our market and technology
leadership in what is one of the most exciting areas of our
industry's transformation: convergent telecom," said GV Kumar, CEO
and managing director of Megasoft. "Megasoft and bcgi link
technology with services, thereby creating an exceptional platform
to add next-generation, high-value products and strategically
position the company for future growth." The tender offer will be
conditioned upon, among other things, approximately 83 percent of
bcgi's shares being tendered in the offer based on the number of
current shares and is expected to be completed during the third
quarter of 2007, subject to customary regulatory approvals and
other conditions. The transaction is not subject to a financing
contingency. There can be no assurance that the transaction will be
approved or consummated. Additional Information and Where to Find
It In connection with the tender offer, bcgi expects to file a
solicitation/recommendation statement on Schedule 14D-9 with the
SEC. In connection with the proposed merger, bcgi expects to file a
proxy statement with the SEC, if required by law. Investors and
security holders are strongly advised to read these documents when
they become available because they will contain important
information about the tender offer and the proposed merger. Free
copies of materials filed by bcgi will be available at the SEC's
web site at http://www.sec.gov/, or at the bcgi web site at
http://www.bcgi.net/ and will also be available without charge, by
directing a request to bcgi at 55 Middlesex Turnpike, Bedford, MA
01730, Attention: Investor Relations. bcgi and its directors,
executive officers and other members of its management and
employees may be deemed participants in the solicitation of tenders
or proxies from its shareholders. Information concerning the
interests of bcgi's participants in the solicitation is set forth
in bcgi's most recent proxy statement and other public filings with
the SEC, and will be set forth in the proxy statement relating to
any merger, if one is required to be filed, and in the
solicitation/recommendation statement on Schedule 14D-9 when they
become available. This press release is for informational purposes
only and is not an offer to buy or the solicitation of an offer to
sell any securities. The solicitation and the offer to buy shares
of bcgi's common stock will only be made pursuant to a tender offer
statement on Schedule TO, including an offer to purchase and other
related materials, that Tea Party Acquisition Corp., a wholly-owned
subsidiary of Megasoft Limited, intends to file with the SEC. Once
filed, bcgi shareholders should read those materials carefully
prior to making any decisions with respect to the offer because
they contain important information, including the terms and
conditions of the offer. Once filed, bcgi shareholders will be able
to obtain the tender statement on Schedule TO, the offer to
purchase and related materials with respect to the offer free of
charge at the SEC's web site at http://www.sec.gov/, from the
information agent named in the tender offer materials or from Tea
Party Acquisition Corp. About bcgi bcgi delivers innovative
products and services that enable mobile operators and MVNOs
worldwide to differentiate their offerings and increase market
penetration while reducing costs. Founded in 1988, bcgi is a leader
in identifying and addressing new market needs with proven
solutions, including prepaid and postpaid billing, payments and
access management. For more information, visit
http://www.bcgi.net/. About Megasoft Established in 1994, Megasoft
is a transnational intellectual property- driven, product-based
technology company that focuses its expertise on the telecom
sector. The company provides telecom services throughout the globe
under its XIUS brand name. Listed in the Bombay Stock Exchange in
India, the company has strong product engineering and product
development capacities with CMM Level 5 certification and has
operations in the U.S., UK, Singapore, Malaysia and Germany, and in
Hyderabad and Chennai in India. Additional information about
Megasoft is available at http://www.megasoft.com/ and
http://www.xius.com/. bcgi's Cautionary Statement Regarding
Forward-Looking Statements This press release contains
forward-looking statements that involve risks and uncertainties,
including statements regarding the timing of commencement and
completion of the transactions described above, the perceived
benefits to bcgi shareholders and customers, management plans
relating to the transactions, the parties' ability to complete the
transactions, the anticipated impact of the transactions on the
parties, including Megasoft's future operating results. Such
statements are based on management's current expectations and are
subject to a number of uncertainties and risks that could cause
actual results to differ materially from those described in the
forward-looking statements. Important factors that would cause
actual results to differ materially from those indicated by such
forward-looking statements include, for example, the ability and
willingness of bcgi and Megasoft to satisfy or waive the conditions
to the tender offer and merger, the accuracy of pre-transaction
valuations of bcgi, the ability to successfully integrate personnel
and operations in the surviving corporation and the possibility
that competing offers may be made for bcgi. bcgi undertakes no
obligation to update any of the forward-looking statements after
the date of this press release. DATASOURCE: Boston Communications
Group, Inc. CONTACT: Michael Powell of Megasoft, +1-571-426-8997, ;
Patricia Travaline of bcgi, +1-781-904-5153, Web site:
http://www.bcgi.net/ http://www.megasoft.com/
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Boston Communications (NASDAQ:BCGI)
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