Onyx Software Corp has bowed to the inevitable and has withdrawn its proposal to acquire Pivotal Corp on the grounds that it is unlikely to succeed.
In a statement announcing its decision, Onyx CEO Brent Frei said: It is unfortunate that Pivotal denied their shareholders the opportunity to pursue the Onyx acquisition proposal that many industry observers saw as a superior offer for shareholders and good for the industry.
Onyx maintains that its all-share stock swap offer, which valued Pivotal shares at $2.25, was superior to Oak Investment Partners all-cash offer based on a price of $1.78 per share and CDC Software’s offer of $2.14 per share for a part cash/part stock swap or $2.00 if investors opt for cash.
Although Pivotal shareholders have yet to vote on the Oak offer, the markets have indicated their preference for a cash offer, and once two such bids were on the table, any chance Onyx had faded away.
However, Onyx announced a migration program, offering Pivotal customers a 1:1 user license exchange claiming that it provided a cost-effective way for users of Pivotal’s client-server architected software to migrate to an internet-architected CRM platform.
The Pivotal story is not over yet. Oak has until Thursday to respond to CDC’s formal offer, which has been deemed to be a superior transaction by Pivotal’s Special Committee.
This article is based on material originally published by ComputerWire.