Tempe, AZ -- January 9, 2002 -- Datastream Systems this week rejected a buyout offer from MRO Software, saying its rival's bid was inadequate and not in the in the best interests of Datastream's shareholders.
In December, MRO had proposed purchasing all outstanding shares of Datastream for $6.00 per share, including $1.00 per share in cash and $5.00 per share in MRO Software common stock, an offer that MRO said constituted a 45 percent premium over the 15-day average closing price of Datastream's stock at the time.
In a letter addressed to MRO Chairman Robert Daniels and dated January 8, Datastream Chairman Larry Blackwell wrote: "Our board of directors has reviewed Datastream's strategic plan, the investments we have made and the momentum we are building and has concluded that the long-term interests of our stockholders are best served by Datastream remaining independent. We are not for sale to MRO Software or any other third party at this time."
Bedford, Mass.-based MRO Software offers an enterprise asset maintenance solution called MAXIMO. MRO had argued in December that by joining the companies' solutions, a combined company could offer an expanded platform to address new and existing markets, allowing diversification of revenue streams and accelerated growth. "We would be able to create multiple market synergies, such as upsell opportunities into each company's customer base, and a unified e- Commerce 'pull,'" Daniels wrote in a December 20 letter to Blackwell.
In rejecting MRO's offer, Datastream, a 16-year-old company offering enterprise asset management solutions, also announced this week that it expects to exceed consensus estimates for fourth quarter 2001 total revenue, license revenue and earnings per share. The company said it expected fourth quarter license revenue to exceed consensus estimates by at least 25 percent.
Greenville, SC-based Datastream will announce its fourth quarter results February 5.
Meanwhile, petroleum company Holly Corp. today announced that it would use Datastream's 7i and iProcure solutions to help manage and maintain critical assets in both refinery and pipeline operations. Holly Corp.'s Navajo and Montana Refining operations have a combined production capacity of 67,000 barrels per day of crude petroleum and operate approximately 1,400 miles of pipeline.