Pivotal has rejected a surprise acquisition proposal from fellow CRM solution maker Onyx.
The Onyx bid, which proposed a 26% premium over an October offer made by Oak Investment Partners - an investment firm whose bid will, essentially, combine Pivotal and Talisma, a Microsoft-based e-service solutions provider.
The Onyx offer was directed to the special committee of the board of directors of Pivotal, which confirmed that it did not support the proposal. The committee considered a number factors, but top of mind was how the deal would affect Pivotal shareholders.
Pivotal cited the volatility and relative illiquidity of Onyx stock, the underperformance of Onyx share prices during the past 12 months as well as outstanding Onyx litigations and the company’s history of small acquisitions and inexperience in completing large transactions as other key influences on its decision.
Additionally, Pivotal questioned the product synergies between the two CRM suppliers and said that the potential loss of customers and absence of a financial sponsor make a merged Pivotal/Onyx company an unattractive entity.
Meanwhile, the Oak transaction is still awaiting approval from Pivotal’s shareholders.
Carly Suppa writes for ITWorldCanada.com