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March 17 (Reuters) - Private equity firm Vector Capital said it has offered to buy Captaris Inc CAPA.O, which makes software to manage documents, for $4.75 per share, a 36 percent premium to the stock’s closing price on Friday.
The offer values the company, which has annual revenue of about $95 million, at $127 million.
San Francisco-based Vector Capital is the largest shareholder in Captaris, with a 10 percent stake in the company. Shares of Captaris rose more than 25 percent after Monday’s offer.
In an open letter, Vector Capital urged the Captaris board to expedite the process to sell off the company.
Earlier in the day, Captaris said it was considering strategic alternatives and had hired RBC Capital Markets to assist it in the process.
“Hiring another capable investment bank, RBC Capital Markets, to replace Credit Suisse and conduct another strategic review comes across as a delaying tactic,” Vector Capital said in the letter.
“It is imperative that the company be sold now and further erosion to shareholder value be prevented,” it said.
The technology-focused firm is best known for its buyout of Canadian software company Corel Corp CRE.TO CREL.O in 2003. Other down-on-their-luck technology brands Vector has acquired include Register.com, SafeNet, WatchGuard Technologies and WinZip. Most recently, Vector had acquired the application performance management business of security software maker Symantec Corp (SYMC.O) and California-based printing software maker Printronix.
Shares of Captaris were trading up 66 cents at $4.16 in afternoon trade on Nasdaq. Before Monday’s gains, the stock had lost about 44 percent of its value since touching a high of $6.3 in April 2007. (Reporting by Saumyadeb Chakrabarty in Bangalore; Editing by Gopakumar Warrier)