American Software, Inc. to Increase Tender Offer Price for Logility, Inc. to $7.02 per Share
Atlanta (May 15, 2009) – American Software, Inc. (NASDAQ: AMSWA) announced today that it has agreed to increase the price of its offer to acquire all of the outstanding common stock of Logility, Inc. (NASDAQ: LGTY) not currently owned by American Software to $7.02 per share net to the seller in cash, without interest. The $7.02 offer price represents a premium of 40.4% when compared to the closing price on March 18, 2009 (the last trading day prior to the initial announcement of the tender offer) and a 37.6% premium over American Software’s original proposal of $5.10, which was also the closing price on May 14, 2009. The tender offer is expected to commence as soon as reasonably practicable. American Software currently owns approximately 88% of the outstanding common stock of Logility.
The decision to increase the offer price follows extensive discussions between the special committee of independent directors of American Software formed to conduct the tender offer and the special committee of independent directors of Logility appointed to review the tender offer. Logility’s special committee has informed the American Software special committee that the Logility special committee will recommend that Logility’s shareholders accept the tender offer and tender their shares pursuant to the tender offer.
American Software expects that the special committee of Logility will file with the Securities and Exchange Commission a Schedule 14D-9 to advise shareholders of the special committee’s recommendation with respect to the tender offer price of $7.02 upon commencement of the tender offer, or shortly thereafter.
Source: Logility
