TORONTO, CANADA--(Marketwired - Dec. 9, 2016) - Constellation Software Inc. ("Constellation") (TSX:CSU) announced today that Constellation and a subsidiary of Constellation have entered into an agreement with Redknee Solutions Inc. ("Redknee") (TSX:RKN) providing for an investment of US $80 million by Constellation in Redknee (the "Redknee Agreement").
Pursuant to the Redknee Agreement, Redknee has agreed to complete a private placement to a subsidiary of Constellation of Series A Preferred Shares of Redknee and a common share purchase warrant for gross proceeds of US $80 million. The holders of the majority of the outstanding Preferred Shares will be entitled to nominate and elect a majority of the directors of Redknee. Dividends on the Preferred Shares if, as and when declared by the board of directors of Redknee, will be payable quarterly on the last business day of each calendar quarter at the rate of 10% per annum on the original issue price of US$100 per Preferred Share; provided, that to the extent such dividends are not declared and paid, dividends accrue at the annual dividend rate and compound monthly. Completion of the investment will be subject to approval of holders of common shares of Redknee at a meeting of shareholders expected to be held in late January 2017.
The foregoing description of the transaction and the terms of the Redknee Agreement is a summary only, is not complete and is qualified in its entirety by reference to the full text of the Redknee Agreement, which will be filed on SEDAR by Redknee.
Constellation Software Inc. (TSX:CSU) is an international provider of market leading software and services to a select number of industries, both in the public and private sectors. Constellation's mission is to acquire, manage and build market-leading software businesses that develop specialized, mission-critical software solutions to address the specific needs of particular industries.
Established in 1999, Redknee Solutions Inc. (TSX:RKN) is the parent of the wholly-owned operating subsidiary Redknee Inc. and its various subsidiaries. References to Redknee refer to the combined operations of those entities. For more information about Redknee and its solutions, please go to www.redknee.com.
Forward Looking Statements:
Certain statements herein may be "forward looking" statements. These forward looking statements reflect current assumptions and expectations regarding future events and are made as of the date hereof and Constellation assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.