Vector Capital’s Saba closes Halogen Software acquisition

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By Ted Liu

Saba Software Inc., a portfolio company of Vector Capital, along with Michael Slaunwhite, Halogen’s co-founder, executive chairman and largest shareholder, have closed acquisition of Halogen Software (TSX: HGN) for $12.50 in cash per share for a fully-diluted equity value of approximately $293 million or $225.1 million to minority shareholders.

Saba Software funded the acquisition with a $19 million equity financing from Vector Capital IV, L.P. and Vector Entrepreneur Fund III, L.P., a $150.6 million debt financing from Golub Capital Markets LLC, $49 million available cash from Halogen and cash available from Saba.

The new, combined organization is now one of the largest independent talent management companies in the world, with 1,000 employees serving more than 4,000 customers in 195 countries around the globe.

MNP LLP provided formal valuation, National Bank Financial acted as financial advisor and Bennett Jones LLP as its legal counsel to Halogen’s special committee. Osler, Hoskin & Harcourt LLP acted as legal counsel to Halogen.

Stikeman Elliott LLP and Paul Hastings LLP acted as legal counsel to Vector Group. Blake, Cassels & Graydon LLP acted as legal counsel to Slaunwhite.

photo credit: Halogen Software