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Software Maker Dye & Durham Gets Unsolicited $940 mln Go-private Offer

Software Maker Dye & Durham Gets Unsolicited $940 mln Go-private Offer
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Software Maker Dye & Durham Gets Unsolicited $940 mln Go-private Offer

Software Maker Dye & Durham Gets Unsolicited $940 mln Go-private Offer

Software maker Dye & Durham has received an unsolicited bid to take it private in a deal valued at C$1.34 billion, or C$20 per share, the Canadian company said on Tuesday, without disclosing the details of the bidder.

The company's second-largest shareholder, Plantro, has submitted a bid to take it private, Bloomberg News reported on Monday.

The offer represents a deal value of C$1.34 billion ($939.89 million), according to Reuters calculations.

The company, which had a market cap of about C$787 million based on its closing price on Friday, previously received four takeover bids in the low- to mid-$20s range late last year.

This offer, however, undervalues the company, analysts at Raymond James said in a note. "This appears to be a predatory bid to take advantage of the recent share price decline," the analysts added.

Plantro, which is controlled by former Dye & Durham CEO Matthew Proud, owns ~12.1% of the outstanding shares, data from LSEG shows.

Proud, along with his younger brother Tyler, grew the company from a C$4 million regional upstart to a C$2.56 billion giant before stepping down in November last year.

The company provides cloud-based software and technology solutions for legal and business professionals.

His exit was the culmination of a lengthy battle with discontented investors, who were against the company's debt-fueled acquisition strategy.

Last week, Dye & Durham shook up its board when chair Hans Gieskes — who was elected after a 10-month campaign by activist investor Engine Capital — stepped down from his positions.

Engine Capital's Arnauld Ajdler was made chair of the board, whereas Sid Singh succeeded Gieskes as interim CEO.

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US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
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US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

The US Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive US goods and technology at their plants in China, according to people familiar with the matter.

The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries, Reuters said.

A White House official said the United States was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed.

"There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations."

Shares of US chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4%, Lam Research fell 1.9% and Applied Materials sank 2%. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5%.

A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either.

In October 2022, after the United States placed sweeping restrictions on US chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods.

In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade.

A company with VEU status is able to receive designated goods from a US company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive US-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it.

The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements.

“Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.”

Industry sources said that if it became more difficult for US semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors.

"It’s a gift," one said.