Toronto, Canada, December 20, 2016 – Constellation Software Inc. (“Constellation”) (TSX: CSU) announced today that the previously announced subscription agreement entered into by Constellation with Redknee Solutions Inc. (“Redknee”) (TSX: RKN) on December 9, 2016 providing for a proposed investment by a subsidiary of Constellation of US$80 million in Redknee (the “Agreement”) has been terminated pursuant to its terms.
The Agreement provided that, in the event that Redknee received a competing proposal that was considered to be superior by Redknee to the transaction contemplated by the Agreement, Constellation had the right (the “Matching Right”) to offer to amend the Agreement such that the competing proposal was no longer a superior proposal. Redknee provided notice to Constellation and thereafter announced that it had received an offer from an alternative investor which Redknee’s Board of Directors had determined constituted a superior proposal within the meaning of the Agreement.
Constellation has provided notice to Redknee that it will not exercise the Matching Right. Accordingly, Redknee has terminated the Agreement in accordance with its terms and Constellation will receive a termination fee of US$3.2 million.
Constellation Software Inc. (TSX: CSU) is an international provider of market leading software and services to a select number of industries, both in the public and private sectors. Constellation’s mission is to acquire, manage and build market-leading software businesses that develop specialized, mission-critical software solutions to address the specific needs of particular industries.
Forward Looking Statements:
Certain statements herein may be “forward looking” statements. These forward looking statements reflect current assumptions and expectations regarding future events and are made as of the date hereof and Constellation assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.
For further information, contact:
Constellation Software Inc.
Jamal Baksh, Chief Financial Officer
Tel: (416) 861-9677