KKR & Co‘s KKR managed funds inked an arrangement deal to acquire mdf commerce inc. MECVF for a total equity value of C$255 million.
As per the deal, mdf commerce shareholders will receive C$5.80 in cash per share, representing a premium of approximately 58% to the closing price of the common shares on the TSX on March 8, 2024.
The cash consideration, which is payable entirely in cash, represents a premium of about 59% to the 20-day volume-weighted average share price for the period ending on March 8, 2024, of C$3.65 per common Share, and a 30% premium to the 52-week high price on the TSX of C$4.45 per common Share achieved on December 8, 2023.
mdf commerce’s North American eProcurement platform serves over 6,500 government agencies and more than 650,000 suppliers across Canada and the U.S.
“We are excited to strategically partner with KKR to accelerate our expansion and scale our industry-leading platform even further. We look forward to leveraging their relationships, resources, and expertise as we execute on our strategy and explore new projects and opportunities that will improve mdf commerce’s service offering and continue growing market share,” said Luc Filiatreault, President and Chief Executive Officer, mdf commerce.
John Park, Partner at KKR, said, “We look forward to the enormous opportunity ahead for the mdf commerce eProcurement platform as governments increasingly embrace digital solutions.”
KKR is investing in mdf commerce through its Ascendant Strategy, which focuses in middle market businesses in North America as part of its Americas Private Equity platform.
The deal is expected to close in the second quarter of calendar 2024, subject to regulatory approvals and customary closing conditions.
As of FY23-end, KKR’s cash and investments stood at $29 billion.
Price Action: KKR shares traded lower by 1.4% at $97.27 on the last check Monday.
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