Comverge Inc. has agreed to a roughly $49 million buyout with private equity firm H.I.G. Capital in a deal the energy management company said solves its “immediate” need for capital.
The deal offers Comverge shareholders $1.75 a share, a 6.9 percent discount to its Friday closing price and well below its 52-week high at $5.09. Shares were recently off 1 percent to $1.86 in trade after the New York open, still suggesting shareholders expect a higher offer.
“The transaction addresses the risks associated with the company’s liquidity position, provides for our financial viability going forward and allows Comverge to continue to execute on its business plan with the financial backing of H.I.G. Capital,” said Comverge chairman Alec Dreyer.
The Comverge board has approved the definitive agreement, which also allows the company to seek alternative proposals during a so-called 30-day “go-shop” period.
Comverge is headquartered in Norcoss, Ga., and has an office in Broomfield.
In a recent filing with the Securities and Exchange Commission, Comverge reported that its independent auditor had expressed significant doubt about the company’s ability to continue to operate due to a combination of cash flow and debt-related issues.
