Vector Capital’s Saba to acquire Halogen for $293M

Saba Software Inc., a portfolio company of Vector Capital, has agreed to acquire Halogen Software Inc. (TSX: HGN) at $12.50 per share in cash for a fully-diluted equity value of approximately $293 million.

Michael Slaunwhite, Halogen’s co-founder, Executive Chairman and largest shareholder, will become the Chairman of the combined company and will be one of its largest independent shareholders.

JMI Equity backed Halogen went public on TSX on May 17, 2013 at $11.50 per share. JMI Equity continues to hold Halogen shares with Harry Gruner, Managing Member of JMI Equity, continuing to serve as director of the company.

The transaction is expected to close in the second quarter of 2017. With the acquisition of Halogen, Saba aims to extend its position as a leading provider of end-to-end SaaS Talent Management Solutions.

MNP LLP provided a formal valuation in connection with the acquisition. National Bank Financial acts as exclusive financial advisor and Bennett Jones LLP as legal counsel to Halogen’s Scpeical Comitte. Osler, Hoskin & Harcourt LLP is acting as legal counsel to Halogen. Stikeman Elliott LLP and Paul Hastings LLP are acting as legal counsel to the Vector Group. Blake, Cassels & Graydon LLP is acting as legal counsel to Slaunwhite.

photo credit: Saba