Prophet 21 Signs Merger Agreement With Equity Firms
The merger is expected to close in the first calendar quarter of 2003, subject to customary conditions, including approval by the company's stockholders. The company obtained commitment letters with respect to all necessary financing.
Prophet 21 will file a proxy statement with the Securities and Exchange Commission and schedule a special meeting of its stockholders to vote on a proposal to approve and adopt the merger agreement as recommended by its board of directors. Dr. John E. Meggitt and Dorothy M. Meggitt, the founders of Prophet 21 who also are majority shareholders and board members, have agreed to vote in favor of the merger agreement.
"This transaction brings to Prophet 21 the opportunity to move forward more aggressively, to fully leverage our brand equity, leading technology offerings, and market penetration," said Chuck Boyle, Prophet 21's president/CEO. "The management team will own a substantial interest in the business going forward. We are excited to continue to build the business with the financial backing and business expertise of Thoma Cressey Equity Partners and LLR Partners."