Filed under: Deals, Raising money, Public or private?
NetManage Inc. (NASDAQ: NETM) is apparently going to remain an independent company, despite a prior buyout offer. The company has announced that Rocket Software informed NetManage that it has failed to secure the financing that was required for it to complete the proposed acquisition of NetManage within the contracted time line.
This deal was already having troubles earlier this year. Rocket Software removed its due diligence contingency on January 10, 2008, and then on January 18, 2008, the two concurred to a contract extension to allow Rocket time to secure the financing needed to complete the merger.
As a result, the merger agreement has been terminated. The good news here’s that NetManage has been profitable for the last three quarters after a period of losses.
NetManage saw shares close at $4.78 on Friday, and the 52-week trading range is $3.60 to $6.99. The original deal valued NetManage at $7.20 per share. Friday’s market cap was a mere $45.8 million. It seems some can’t raise even small amounts of capital regardless of whether private equity and LBO lending is in vogue or out on you know what.
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