Camelot Information Systems Inc. (NYSE: CIS) is merging with parent company Camelot Employee Scheme Inc. in a deal that values Camelot Information at $98.2 million.
The deal works out to about $2.05 per American Depository share, more than the company’s $1.50 per share stock trading price on March 11, the last day of trading before the announcement of a going-private proposal. The company’s shares were trading at $1.80 on September 18.
In March, Camelot Information’s chairman and CEO Simon Yiming Ma, and president, Heidi Chou, proposed to acquire all of the company’s outstanding shares for $1.85 per American depository share. Ma and Chou will control the company through the deal.
China Development Industrial Bank has agreed to provide Camelot Employee with $70 million in debt financing for the deal.
Beijing-based Camelot Information provides financial industry information technology services in China.
Duff & Phelps Securities LLC and Duff & Phelps LLC are serving as financial advisers to Camelot Information’s independent committee, while Shearman & Sterling LLP is provided legal advice. Skadden Arps Slate Meagher & Flom LLP is serving as U.S. legal counsel to Camelot Employee. Locke Lord LLP is Duff & Phelps’ U.S. counsel.