Logility approves American Software's $7.02-per-share tender offer

By Lisa Kerner

Charlotte, N.C., May 22 - The special committee of Logility, Inc.'s board of directors recommended that shareholders tender their shares in American Software, Inc.'s previously announced offer for the company.

The $7.02-per-share offer ends at midnight ET on June 22.

As previously reported, American Software increased its offer for Logility to $7.02 per share from $5.10.

American Software has an approximately 88% equity interest in Logility.

"Full ownership of Logility will allow us to fully realize cost synergies and improve operational efficiencies by reducing complexity and eliminating duplication in finance and accounting functions," said American Software president and chief executive officer James C. Edenfield.

"These cost synergies, when combined with access to all of Logility's cash flow, will significantly benefit American Software in the future," Edenfield said.

American Software said it will finance the transaction with cash on hand. The company is interested in acquiring the shares of Logility held by the minority shareholders and said it has no interest in disposing of its controlling interest in the company.

Logility is a supply chain management solutions provider.

American Software develops, markets and supports integrated business applications, including supply chain management, internet commerce, financial, warehouse management and manufacturing packages.

Both companies are located in Atlanta.

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