You Are Here: > Home > Our Company > Press Releases > 2009/05/20

Our collective knowledge provides greater insights

SumTotal's Board of Directors Determines That Revised Proposal From Vista Equity Partners is a Superior Proposal

MOUNTAIN VIEW, Calif., May 20, 2009 – SumTotal® Systems, Inc. (NASDAQ: SUMT), the market leader and a global provider of talent development solutions, today announced that its Board of Directors has determined that a revised proposal received today from Vista Equity Partners (“Vista Equity”) to acquire all of the outstanding shares of SumTotal common stock for $4.85 per share in cash is a superior proposal, as defined in SumTotal’s merger agreement with Accel-KKR, as amended on May 19, 2009 (the “Amended Accel-KKR Agreement”). In accordance with the terms of the Amended Accel-KKR Agreement, SumTotal has delivered notice to Accel-KKR of the Board’s determination.

Under the terms of the Amended Accel-KKR Agreement, SumTotal is obligated to negotiate in good faith with Accel-KKR for a period of three business days (through May 26, 2009) to make adjustments to the terms and conditions of the merger agreement. As previously announced on May 19, 2009, SumTotal and Accel-KKR entered into an amended definitive merger agreement under which Accel-KKR would acquire all of the outstanding shares of SumTotal common stock for $4.80 per share in cash. In accordance with the Amended Accel-KKR Agreement, SumTotal would be required to pay a fee of $6.67 million to Accel-KKR in order to accept a superior proposal from any other party, including Vista Equity (the “termination fee”). SumTotal noted that the termination fee under Vista Equity’s proposal as initially announced on May 13, 2009 and revised on May 20, 2009 is the same amount as the termination fee in the Amended Accel-KKR Agreement.

Under the terms of Vista Equity’s revised proposal, Vista Equity would acquire all of the outstanding shares of SumTotal common stock for $4.85 per share in cash. In addition, if SumTotal were to enter into the merger agreement proposed by Vista Equity following the three business day negotiation period, SumTotal would be required to pay a fee of $6.67 million to Vista Equity in order to accept a superior proposal from any other party. Vista Equity’s revised proposal also contemplates an increase in the consideration payable to SumTotal stockholders to up to $4.95 per share in cash in the event of the invalidation or reduction of the termination fee SumTotal is required to pay Accel-KKR in accordance with the terms of the Amended Accel-KKR Agreement. SumTotal noted that it considers the Amended Accel-KKR Agreement to be a binding obligation of SumTotal and that Accel-KKR has indicated to SumTotal that it is not willing to reduce the termination fee payable to Accel-KKR under the Amended Accel-KKR Agreement, and that stockholders should therefore expect the current Vista Equity proposal to be $4.85 per share in cash.

SumTotal’s Board is not withdrawing, amending, qualifying or modifying its recommendation with respect to the Amended Accel-KKR agreement and is not making any recommendation at this time with respect to the revised Vista Equity proposal. There can be no assurance a transaction with Vista Equity will result.

RBC Capital Markets Corporation is acting as financial advisor to the Board of SumTotal, and Wilson Sonsini Goodrich & Rosati, Professional Corporation, is acting as SumTotal’s legal advisor.

About SumTotal Systems, Inc.
SumTotal Systems, Inc. (NASDAQ: SUMT) is the market leader and a global provider of talent development solutions. SumTotal deploys mission-critical solutions designed to drive learning, align goals, develop skills, assess performance, plan for succession and set compensation. SumTotal’s solutions aim to accelerate performance and profits for more than 1,500 companies and governments of all sizes, including six of the world’s 10 biggest pharmaceutical makers, six of the 10 largest automotive companies in the world, four of the five branches of the U.S. Armed Forces, three of the world’s top five airlines, five of the six largest U.S. commercial banks and two of the world’s top five specialty retailers. Mountain View, CA-based SumTotal has offices across Asia, Australia, Europe and North America. For more information about SumTotal’s products and services, visit www.sumtotalsystems.com.

SumTotal and the SumTotal logo are registered trademarks or trademarks of SumTotal Systems, Inc. and/or its affiliates in the United States and/or other countries. Other names may be trademarks of their respective owners.

Media Contacts

Brittany Edwards
Porter Novelli
brittany.edwards@porternovelli.com
+1-512-241-2255