Onyx Software to be acquired by M2M Holdings

Bellevue, Wash.-based Onyx Software will be acquired by privately held M2M Holdings for $92 million in cash, or $4.80 a share. Battery Ventures and Thoma Cressey Equity Partners, private equity firms that jointly own M2M Holdings, said the deal would help them move into CRM. On April 7, Onyx said it had hired investment banker Piper Jaffray as financial adviser to assist in evaluating CDC’s offer and any other strategic opportunities.

Onyx would become a division of M2M’s enterprise-software company, Made2Manage Systems. Onyx headquarters would remain in Bellevue, but the fate of its 250 employees is subject to negotiations between the company and M2M over the next 60 to 90 days. Onyx directors and officers representing 17.6 percent of the outstanding shares have agreed to the acquisition, the company said. Onyx rejected CDC’s initial offer, which valued Onyx at $50 million.

Later, CDC, which is based in Hong Kong and operates the China.com portal, raised the bid to $4.57 a share, or about $80 million, in cash. Onyx shares closed up 51 cents Tuesday to $4.68. Onyx had received unsolicited offers from CDC Corp. earlier this year. Leob Partners of New York, an institutional investor that owns 9.8 percent of the company’s shares, had questioned whether the Onyx management was working in the best interests of shareholders.

“This acquisition is the ideal way for Onyx to pursue its vision as a leading supplier of enterprise-caliber CRM solutions to mid- and large-enterprise services-sector customers,” said Battery Tabors general partner Dave Tabors in press material. “We take a long-term perspective on Onyx’s growth.”