) acquisition by GTCR Valor Merger Sub, Inc., an associate of
Chicago-based private equity firm, GTCR LLC., was completed on May
30, 2014. The company was valued at $446.5 million, which GTCR
agreed to pay in cash.
As per the agreement, GTCR acquired all the shares of Vocus for
$18.0 per share. GTCR also purchased the company's Convertible
Preference shares for $77.3 million. As a result, Vocus' shares
will no longer trade on the NASDAQ Global Select Market.
GTCR selected Deutsche Bank Securities Inc., a division of
) to serve as its financial advisor and Latham & Watkins LLP to
act as its legal counselor. On the other hand,
Stifel Financial Corp.
) served as a financial advisor to Vocus while Skadden, Arps,
Slate, Meagher & Flom LLP served as its legal counselor.
GTCR LLC is a privately-held equity firm, which invests in
financial services and technology companies. It provides
cloud-based marketing solutions and offers products and services to
increase user satisfaction and improve marketing efficiencies.
We believe that Vocus is an ideal acquisition target for the
marketing suite it provides and its steady customer base. The
company is targeting more customers and cloud opportunities in the
small and medium business space. Furthermore, the company continues
to acquire more customers for its marketing suite, which reflects
It is noteworthy that Vocus has a debt-free balance sheet with
$34.7 million in cash and short-term investments as of Dec 31,
2013. Additionally, Vocus' transformation from a purely PR-centric
business to a cloud-based marketing solutions provider is proving
to be beneficial, especially with respect to total active
Nonetheless, Vocus is facing ever-increasing competition from
the likes of
) in the software-as-a-service (SaaS) segment. User preference
seems to have shifted toward SaaS-based Digital Marketing suites
from standalone PR solutions. This practice is limiting Vocus'
growth prospects and profitability.
Moreover, Vocus reported adjusted loss per share of 4 cents in
the fourth-quarter of 2013, which compared unfavorably with
management's guidance of earnings of 3 to 4 cents and earnings of 1
cent per share in the year-ago quarter.
Currently, Vocus carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
VOCUS INC (VOCS): Free Stock Analysis Report
MERKETO INC (MKTO): Free Stock Analysis Report
DEUTSCHE BK AG (DB): Free Stock Analysis Report
STIFEL FINL (SF): Free Stock Analysis Report
To read this article on Zacks.com click here.