Viesta Corp. acquires Viewlocity
Viesta Corp., a newly formed company, has acquired Viewlocity, an Atlanta-based provider of supply chain management software.
Viewlocity will become a wholly owned subsidiary of Viesta Corp., which was formed for purposes of this transaction. In connection with the deal, Viesta and Viewlocity will receive new equity financing from an affiliate of Investcorp, an investment group active for two decades in North America and Europe.
Following the merger, Viewlocity will no longer be publicly traded, and will operate as a privately held subsidiary.
In a statement, Viewlocity said it had “engaged with numerous potential third-party acquirers and investors,” but none “expressed an interest in a transaction that would have provided a more favorable financial result for shareholders and creditors of Viewlocity.”
Viewlocity’s board of directors concluded: “in the absence of the merger agreement with Viesta … it is unlikely the company would be able to continue to operate as a going concern.”
Viewlocity’s creditors made concessions “as a result of the promise of greater financial stability following the merger as a result of the Investcorp capital infusion into Viesta,” the Viewlocity statement said.