Vista Equity Partners Raises Offer For SumTotal

MOUNTAIN VIEW, Calif. (AP) — A private equity firm has submitted a higher buyout bid to software maker SumTotal Systems Inc., in a renewed attempt to thwart SumTotal's agreement to be purchased by rival Accel-KKR.

SumTotal's board said Thursday that Vista Equity Partners' bid of $4.75 per share is superior to Accel-KKR's offer of $3.80 per share in April.

But SumTotal also said it is "not withdrawing, amending, qualifying or modifying its recommendation" to shareholders to accept Accel-KKR's offer. Accel-KKR, based in Menlo Park, Calif., focuses on middle-market technology companies. It is a joint venture of Accel Partners and Kohlberg Kravis Roberts & Co.

SumTotal has to pay a break-up fee of $3.1 million if it turns down Accel-KKR's bid and accepts another offer.

Monday, SumTotal said Vista's previous offer to buy the company for $4.50 per share in cash, for a value of $140.4 million including debt, was superior to Accel-KKR's bid. In April, Vista offered to buy SumTotal for $3.25 per share until it was trumped by Accel-KKR.

SumTotal provides training and personnel software. The Mountain View, Calif.-based company said its clients include six of the world's largest drugmakers, four of the five branches of the U.S. Armed Forces and five of largest U.S. commercial banks.

Shares of SumTotal rose 24 cents, or 5.3 percent, to $4.75 in afternoon trading.

(This version CORRECTS break-up fee amount. UPDATES stock price.)

>To order reprints of this article, click here: Reprints