Versar has gone private after the close of its acquisition by an affiliate of investment firm Kingswood Capital Management via a tender offer of $0.15 per outstanding share and a second-step merger.
The formerly publicly traded project management company said Tuesday the new capital structure serves to build on its long-term strategic goals.
Kingswood operating executive Dwane Stone has assumed leadership of Versar and will work with the latter’s former CEO Tony Otten, who has taken a consultant role to support the transition.
Stone noted that Versar’s shift into a privately held entity is aimed to control operational costs, deliver flexibility and accelerate decision-making.
Alex Wolf, a managing partner at Kingswood, added the private equity firm seeks to provide oversight, resources and capital to help position Versar in the government services sector.
Versar entered into an agreement with Kingswood regarding the acquisition in September after its board of directors and advisers consulted with an estimated 150 strategic and financial organizations.
Canaccord Genuity served as exclusive financial adviser to Versar while Dentons was the legal adviser to Kingswood, which also tapped Backbone Capital to provide debt financing support.
At least 5.6 million shares of common Versar stock were validly tendered in the tender offer due Friday, with the remainder cancelled and converted into the right to receive the same tender arrangement as a result of the second-step merger.
