Just listened to CC on Globalsoft acquisition.
PR: biz.yahoo.com
CC: vcall.com
I went in skeptical and concerned about potential conflicts of interest, related party, sweetheart deals, but came out feeling AREM definitely got the better of this. No AREM manager had direct or indirect ownership in GLC outside of their ownership of AREM which already owns 7% of GLC. There were lots of tough questions on the call and all were answered to my satisfaction. One questioner commented that AREM really got the best of this deal and couldn't understand how they got such favorable deal terms [the GLC holders had no way to cash out is the answer]. AREM knows GLC, the deal is structured with fixed cost so if GLC performs as expected, AREM wins big, and if GLC slips, AREM can delay or cancel going forward with all but the initial 18% [Heads I win, tails you lose]. The deal terms are set so there's no arbitrage potential, so AREM won't be shorted against GLC. AREM can choose at each increment, just before the increment what combination of 4% [4% !!!] seller financed debt, cash and AREM stock will go towards the purchase.
These are just snippets, you gotta read the release and listen to the call to get the real feel for this. Maybe I'm just getting easy, but it looks like a helluva deal for AREM.
Bob |
