(Bloomberg) -- Dye & Durham Ltd., a Canadian legal software company that’s been under pressure from activist investors, has paused a sale process after two of its largest shareholders said they wouldn’t approve the deals being discussed, according to a person familiar with the matter.
The Toronto-based company received four conditional takeover offers in a second round of bids, the person said, asking not to be named discussing a private process. All of the bids were in the range of low-to-mid C$20 per share, the person added.
But shareholders Mawer Investment Management and EdgePoint Wealth Management said they weren’t interested in the potential bids, the person said, adding that the two firms indicated they would rather see a new board and a new management team in place. Representatives for Mawer and EdgePoint didn’t immediately reply to a request for comment.
Dye & Durham has been working with Goldman Sachs Group Inc. and Canaccord Genuity Group Inc. on a strategic review that may include a sale, merger or other transactions. That’s now on hold until after a shareholder meeting that’s been scheduled for Dec. 17. Dissident shareholder Engine Capital LP has put forward its own slate of directors, arguing the company needs a new direction.
Takeover suitors included two US-based private equity firms and a Canadian one, and Melbourne-based Pexa Group, the person said.
The Globe and Mail reported earlier on the pushback from shareholders, and the Pexa approach was reported by the Australian Financial Review. Representatives for Dye & Durham and Pexa declined to comment.
Dye & Durham shares rose Wednesday to C$18.55 as of 12:26 p.m. in Toronto, and are up 43% over the past year.
Dye & Durham, which provides software and services to the legal and financial sectors, went on an acquisition spree after an initial public offering in 2020. It has since been forced to reconsider its growth strategy because of concerns about high leverage. The company had long-term debt of more than C$1.5 billion as of June 30.
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