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Agilysys tender offer undersubscribed based on initial results
By Lisa Kerner
Charlotte, N.C., Sept. 20 - Based on preliminary results, Agilysys, Inc. expects to accept for purchase 4,722,811, or some 15%, of its common shares at a purchase price of $18.50 each for a total cost of about $87.4 million, excluding fees and expenses, in its Dutch auction tender offer, which ended Wednesday.
Agilysys announced on Aug. 21 its plan to purchase up to 6,000,000 common shares at a price not less than $16.25 or greater than $18.50 per share. The company's stock (Nasdaq: AGYS) closed at $18.18 on Wednesday.
"With this tender offer, we have successfully allowed shareholders an opportunity to liquidate all or a portion of their investment following the divestiture of our KeyLink Systems Distribution Business," chairman, president and chief executive officer Arthur Rhein said in a company news release.
"And at the same time, non-tendering shareholders will increase their pro rata ownership in the company and our future operations. The fact that the offer was undersubscribed indicates that our current strategy of growing our IT solutions business has strong support from our shareholders."
Following this repurchase, the Boca Raton, Fla., IT solutions provider said it will have approximately $170 million in cash on hand and $200 million available for borrowings under its credit facility.
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