KALAMAZOO ? Government software applications provider Manatron said its board has rejected a takeover attempt by Canadian-based Constellation Software to purchase all of Manatron?s outstanding shares for $46 million because the offer ?would not be in the best interests of the company, its shareholders or other stakeholders.?
Constellation made its offer on Dec. 18 through a 13D filing with the Securities and Exchange Commission. Constellation noted in the filing that the proposal is not binding on Constellation at this time but is extended in sincerity to advance a combination that Constellation believes is in the best interests of the shareholders of both companies.
But Manatron CEO Paul Sylvester said his company is only in the second quarter of its three-year operating and growth plan completed following a significant cost
restructuring plan Manatron initiated last April.
?We believe the company’s improvement, which is reflected in the results of the previous two quarters, is evidence that we are on the right track of building
significant additional value for our shareholders,? he said. ?The board and senior
management embrace their fiduciary duty to review all offers which may
benefit shareholders; however, after much discussion, we unanimously
believe this offer does not meet that criterion.”
Manatron’s products support the back-office processes for these government agencies and facilitate the broader business processes via eGovernment and Internet features, such as Internet payments and mortgage lender integration, targeted at the needs of taxpayers and industry professionals. Manatron also provides a variety of professional services, including mass appraisal services, which is the assessment of residential, commercial and other types of properties to ensure updated and equitable property valuations.
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