Megasoft completes acquisition of US firm BCGI

MUMBAI: Software solutions company Megasoft Ltd on Friday said it has completed the acquisition of a US-based, Nasdaq-listed company, Boston Communications Group Inc for USD 65 million.

The acquisition followed the completion of the tender offer by its wholly-owned subsidiary, Tea Party Acquisition Corp, for all outstanding shares of BCGI at 3.60 dollar per share.

According to US Securities and Exchange Commission, tender offer is a broad solicitation by a company or a third party to purchase a substantial percentage of a companys shares or units for a limited period of time.

After the tender offer which expired on August 29, over 1.57 crore shares, or around 88.2 per cent of BCGI's issued and outstanding shares were validly tendered.

The 3.60 dollar per share price represented a premium of around 120 per cent over its average closing price during the 30 days ended July 6.

"Megasoft intends to exercise its option under the merger agreement to purchase newly issued bcgi shares in order to ensure ownership of at least 90 per cent of the aggregate shares outstanding to complete the short-from merger," the company said in a filing to the Bombay Stock Exchange.

Following the acceptance for payment of shares in the tender offer and completion of the transactions contemplated in the merger agreement, BCGI will become a wholly-owned subsidiary of the Megasoft.

Earlier on July 11, Megasoft and bgci had reached a definitive merger agreement regarding the acquisition for an expected aggregate purchase price of around 65 million dollar