Netpliance Gets Buyout Offer From CEO, Investor Group

Netpliance

(NPLI)

said an investor group headed by its chief executive officer has offered to buy out the remaining shares of the company for 65 cents per share, or about $20.3 million.

The Austin, Texas, Internet infrastructure company said the investor group headed by John McHale owns 31,205,185 shares, or about 52% of Netpliance's common stock. The cash deal for 65 cents a share represents a premium from the stock's closing share price of 34 cents on the

Nasdaq

Thursday.

Shares of Netpliance lately escalated 13 cents, or 36.36%, to 50 cents in afternoon trading.

The company said it expects other stockholders will be joining the investor group. Netpliance said the investor group requested "an opportunity to discuss a possible tender offer and merger transaction" for the remaining outstanding shares not owned by the group.

Netpliance's board of directors will form a special committee of independent directors to consider the proposal.