* Deal valued at about $447 mln
* GTCR to offer $18 per Vocus share, a premium of 48 pct
* Deal expected to close in second quarter of 2014
(Adds analyst's comments, updates shares)
By Soham Chatterjee
April 7 Vocus Inc, a maker of
cloud-based software for marketing and public relations, said it
would be bought by private equity firm GTCR Valor Merger Sub Inc
for about $447 million.
GTCR will offer $18 per Vocus share, a premium of 48 percent
to the stock's close on Friday.
Vocus shares rose 47 percent to $17.92 on Monday morning,
making the stock the top percentage gainer on the Nasdaq.
The company recently shifted its focus to mid-sized
companies from small businesses, but is struggling to sell its
software to its new target clients, who want more sophisticated
products, Robert W. Baird & Co analyst Steve Ashley said.
Beltsville, Maryland-based Vocus has not posted a full-year
profit since 2008.
The company owns online press release service PRWeb, social
media marketing company North Social, email marketing company
iContact and Help a Reporter Out service for journalists.
Reuters reported last month that Vocus was looking to sell
itself and had attracted interest from companies such as Web.com
Ashley said in an email on Monday that the valuation for
Vocus seemed fair and he did not expect other bidders for the
"We think it makes sense (for Vocus) to sort out its
operational and strategic issues as a private company, rather
than playing it out in the public realm," Barrington Research
Associates analyst Jeff Houston said.
GTCR will also buy Vocus's Series A convertible preferred
stock for $77.3 million.
Stifel was Vocus's financial adviser for the deal, which is
expected to close in the second quarter of 2014. The deal
includes a termination fee of $13 million.
(Editing by Don Sebastian and Kirti Pandey)