Vocus buyer secures 72% of Cision in takeover battle with Meltwater

GTCR Valor Merger Sub is challenging Meltwater in its bid for Cision.

STOCKHOLM: Private equity firm GTCR Valor Merger Sub, which is in the process of buying Vocus, has acquired 71.9% of Swedish-owned PR software company Cision, for which it faces competition from trade rival Meltwater.

Meltwater, which owns 15.3% of Cision, is still holding out hope that the remaining shareholders, as well as GTCR, will accept its slightly higher bid of 63 Swedish krone per share.

There is speculation that Cision would be combined with marketing and PR software company Vocus if the private equity company triumphs, though GTCR has not confirmed its intentions and its acquisition of Vocus is yet to complete.

The period that Cision shareholders had to accept GTCR’s bid of 61 Swedish krone has now expired, with 61.8% agreeing to the offer. GTCR, which already owns another 10.1%, has said it may acquire further shares in the market.

GTCR has also been granted a request for a special meeting of Cision shareholders on May 20, at which it plans to propose shareholders select a new board, thus strengthening its control of Cision.

The acceptance period for Meltwater’s bid will start around April 29 and close around May 27.

GTCR is making its play for Cision through an investment vehicle called Blue Canyon.

Its $446.5 million (£269 million) acquisition of Vocus, agreed on April 7 and subject to a termination fee of at least $13 million (£7.7 million) if either side pulls out, is expected to close by the end of June.

This article originally appeared on the website of PRWeek UK.

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