mdf commerce to be acquired by KKR

mdf commerce inc., a SaaS leader in digital commerce technologies, announced it has been acquired by KKR, a global investment firm, in an all-cash deal, becoming a private entity. The transaction, valued at C$5.80 per share, offered a significant premium to shareholders, around 58% above the closing price on the Toronto Stock Exchange as of March 8, 2024. This move aligns with mdf commerce's strategic plans to expand its eProcurement platform, which serves over 6,500 government agencies and more than 650,000 suppliers in North America. The board unanimously recommended this deal, supported by fairness opinions from Scotiabank and Desjardins, confirming its financial fairness. The deal is set to close in the second quarter of 2024, pending shareholder and regulatory approvals. KKR aims to accelerate mdf commerce's technology innovations, supporting it with an equity ownership program for employees. Major shareholders, owning about 12.4% of the common shares, have agreed to support the transaction. Legal advisors include McCarthy Tétrault LLP and Foley & Lardner LLP for the company, and Stikeman Elliott LLP and Dechert LLP for KKR. The arrangement underlines KKR's strategy through its Ascendant Strategy, focusing on mid-market businesses in North America.

Deal Type

Merger & Acquisition

Industry

Tech/Computer/IT

Transaction

$ 255,000,000

Deal Status

Active

Closing Date