US CRM technology vendor Onyx Software has signed a definitive agreement to be acquired by privately held M2M Holdings for $92 million in cash.
Earlier this year Onyx successfully fought off an unsolicited bid for control of the company from Hong Kong-based business applications firm CDC Corporation. In January CDC had tried to buy Onyx for $50 million and the Hong Kong firm raised its bid to more than $80 million in March.
M2M, which is jointly owned by Battery Ventures and Thoma Cressey Equity Partners, operates Made2Manage Systems, a provider of enterprise resource planning (ERP) technology. Under the acquisition deal, M2M says it will pay $4.80 per share for Onyx.
Onyx says directors and officers representing approximately 17.6% of its outstanding shares have entered into voting agreements in support of the acquisition.
Janice Anderson, chairman and CEO of Onyx, says the acquisition will provide liquidity to shareholders and a premium to recent trading prices.
"Battery Ventures and Thoma Cressey Equity Partners, Made2Manage Systems' equity sponsors, each have a strong track record of supporting the growth of their portfolio companies and we believe will use their proven industry consolidation experience to help Onyx increase its share of the enterprise CRM market," says Anderson.
Orlando Bravo, managing partner of Thoma Cressey Equity Partners, says: "We see an outstanding opportunity in the relationship between Onyx and Made2Manage Systems as consolidators of the CRM and ERP software markets."
The transaction is expected to close in the third quarter of 2006.
Following the acquisition, Onyx will operate as a separate business unit of Made2Manage Systems.