SunGard Data Systems has signed a definitive agreement to acquire all outstanding shares of Caminus Corporation, a provider of integrated software to the global energy industry, for $9.00 per share in cash.
Based on Caminus's 17.7 million fully diluted common shares outstanding, the transaction has an aggregate value of approximately $159 million.
Under the agreement, a subsidiary of SunGard will launch a cash tender offer to acquire all of Caminus's outstanding shares. Following successful completion of the offer, any remaining shares will be acquired in a cash merger at the same price.
New York-based Caminus specialises in end-to-end, integrated transaction processing, management and scheduling software for firms in the energy industry and has 250 customers. The firm had $84 million in revenue during 2002.
Bill Lyons, Caminus president and CEO, says: "From our point of view, the relationships, resources and geographic reach of SunGard provide a preferred platform from which to quickly achieve further, significant growth."
He adds that the transaction expands career opportunities for its employees.
The company will become an operating unit within SunGard Trading and Risk Systems, to be headed by current Caminus COO John Andrus.
SunGard says the acquisition provides it with an important opportunity to expand into the energy industry.
The board of directors of each company has approved the transaction and the deal is not expected to have a material impact on SunGard's financial results.
Assuming satisfactory results of the tender offer, SunGard estimates that the transaction will be completed in Q1 2003.