Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
BroadVision, provider of e-commerce systems, has agreed to be acquired by Vector Capital, a San Francisco-based private equity firm. Under the terms of the merger agreement, BroadVision stockholders will receive 84 cents per share.
BroadVision Inc., provider of e-commerce systems, has agreed to be acquired by Vector Capital, a San Francisco-based private equity firm. Under the terms of the merger agreement, BroadVision stockholders will receive 84 cents per share in cash--$28.7 million total--with BroadVision becoming a privately held, independent software vendor.
Under a separate agreement, BroadVision, using capital from Vector, will make cash payments totaling $16 million to retire convertible notes and associated warrants through the completion of the merger.
“After exhaustive consideration, we feel strongly that the arrangement with Vector represents the best opportunity for the stockholders of BroadVision to maximize the value of their holdings,” said Pehong Chen, BroadVision president and CEO. “With the current liquidity challenges of the company and the challenges associated with being a small-cap public software provider, we feel that a cash offer today represents the best course for stockholder value.”
BroadVision today reported a second quarter net loss of $2.9 million compared with a net loss of $1.5 million in 2004’s second quarter. The company had reported net earnings of $2.9 million in the first quarter.
Second-quarter revenues totaled $15.5 million, down 5% from $16.4 million for the first quarter and down 23% from $20.1 million from the year-earlier period.