FD to buy out minority Kx Systems shareholders

2 July 2018

FD announces that it has reached agreement with the minority shareholders of Kx Systems, Inc. (“Kx Systems”), a subsidiary of the Group, regarding the acquisition by FD of their entire remaining shareholding (the ‘Transaction’). Upon completion of the Transaction, which is expected to take place on or before 29 June 2019, FD will own 100% of the issued share capital of Kx Systems.

Terms of the Transaction

FD has agreed to acquire the remaining 600,022 Kx Systems shares that it doesn’t already own from the minority shareholders, namely Arthur Whitney and Janet Lustgarten, who are co-founders and current directors of Kx Systems, and their associated persons. The aggregate consideration is $53.8m in cash, to be financed from FD’s available facilities. The terms of the transaction are in line with those agreed between FD and the minority shareholders in October 2014, and include a payment of $12.0m in lieu of anticipated dividends to the minority shareholders for the period up to 31 October 2021.

Brian Conlon, Chief Executive Officer of FD, commented: “Since we acquired a controlling interest in Kx Systems in October 2014 we have invested heavily across our business to target multiple new industries. The agreement to acquire 100% of Kx Systems provides certainty for the Group and its shareholders as we seek to realise the considerable potential we see for further growth.”

 

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development