Diligent confirms US takeover offer, shares jump 26 percent

WELLINGTON - New Zealand software company Diligent Corp Monday confirmed a US investment firm has offered around NZ$941 million ($622.38 million) for the company.

Under the terms of the agreement Diligent shareholders will receive US$4.90 in cash per share from Insight Venture Partners. The offer represents a 31 percent premium to Friday's closing price, Diligent said in a statement to the New Zealand stock exchange. The stock jumped 26 percent on the news.

Diligent's board has unanimously approved the transaction and agreed to recommend that shareholders vote in favor of the deal.

The transaction is subject to shareholder and regulatory approval. The holders of Diligent’s preference shares, including Spring Street Partners LP, Diligent’s largest shareholder, have entered into voting agreements in support of the transaction.

A special meeting of Diligent’s shareholders will be scheduled as soon as possible, the company said. The transaction is expected to close in the second quarter of 2016. Diligent will be a privately held company upon closing. -Reuters