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Digital River will go private in $840M deal [Star Tribune (Minneapolis)](Star Tribune (Minneapolis, MN) Via Acquire Media NewsEdge) Oct. 24--A private investment firm agreed to buy Digital River Inc., the Minnetonka-based maker of e-commerce software, for $840 million, a 50 percent premium over its recent valuation, the companies said Friday. The purchase by Siris Capital Group would put Digital River, which became a public company in 1998 during the first Internet boom, into private ownership. New York-based Siris has purchased two other software firms this year: Pulse Secure, a provider of mobile security products and virtual private networks, and Stratus Technologies, a developer of technologies to safeguard systems against power outages. But for the next 45 days, Digital River is in play. Under the terms of the agreement, Digital River during that time can solicit proposals from other companies that may want it. Siris offered $26 a share for Digital River, well above Thursday's close of $17.38 and a 67 percent premium over its 90-day average price. Digital River shares rose 48 percent in early trading Friday. "We believe this transaction will provide Digital River with the flexibility to innovate and execute our vision of setting the standard for global e-commerce technology and services," David Dobson, Digital River's chief executive, said in a statement. Dobson last year succeeded founder Joel Ronning, who left after a series of earnings disappointments. Ronning is still the largest individual shareholder in the company. The company, which has about $400 million in annual revenue, is scheduled to release its third quarter results on Wedesday. Evan Ramstad -- 612-673-4241 ___ (c)2014 the Star Tribune (Minneapolis) Visit the Star Tribune (Minneapolis) at www.startribune.com Distributed by MCT Information Services |