Carlyle & JMI Taking Gencom Private

The Carlyle Group and JMI Equity have agreed to acquire Gencom Software International Inc. (TSX: GCM), a Canadian supplier of mining productivity solutions. The deal is valued at approximately C$180 million, with Gencom stockholders to receive C$2.90 per share (16% premium to weighted average closing price for the last 45 trading days). It is expected to close by July.


Gemcom Software International Inc. (GCM), the largest global supplier of specialised mining productivity solutions, today announced that it has signed a definitive agreement to be acquired by JMI Equity and The Carlyle Group, in an all cash transaction valued at approximately $180 million. Under the terms of the agreement, Gemcom shareholders will receive $2.90 in cash for each share of Gemcom common stock, representing a 16% premium over Gemcom's weighted average closing price for the last forty-five trading days.

“We are pleased to announce this transaction, which represents the culmination of a thorough review of our standalone plan and strategic alternatives,” stated Burke Corbet, chairman of the Gemcom Board of Directors. “The Board of Directors has concluded that this transaction is in the best interests of our shareholders, allowing them to realise the value of their investments at an all time high price. This acquisition represents a resounding endorsement of the results we have achieved through our strategy, market leadership position and strong management team.”

JMI Equity is a private equity firm exclusively focused on investments in growing software and business services companies throughout North America with approximately $1.3 billion of committed capital under management. The Carlyle Group is a global private equity firm with $81.1 billion under management and operations in 21 countries. Carlyle's U.S. growth capital team invests in growth buyout transactions, expansion-stage growth equity and selected early-stage venture capital opportunities.

“Our strategy at JMI is to focus on software and business services companies with proven business models and to partner with their management teams to build exceptional companies,” said Bob Smith, general partner of JMI Equity. “We are particularly attracted to Gemcom because of its proven leadership team and the execution capabilities of its global staff.  We believe that through continued investment in its technology, people and deep customer relationships, Gemcom will continue to build on its market leadership position in the mining market. This is a unique and exciting opportunity to be part of Gemcom's vision to solve their customers' business issues through technology that will transform the mining industry.”

“Gemcom is an ideal fit with our investment strategy