Altair $176 Million Acquisition of Datawatch Corporation

RBC Capital Markets, LLC is acting as exclusive financial advisor to Altair. GCA Advisors is acting as exclusive financial advisor to Datawatch. Legal counsel for Altair is Lowenstein Sandler LLP and legal counsel for Datawatch is Choate Hall & Stewart LLP.

Altair (Nasdaq: ALTR) and Datawatch Corporation (Nasdaq-CM: DWCH) signed a definitive merger agreement under which Altair has agreed to acquire Datawatch. Under the terms of the agreement, Altair will pay $13.10 per share in cash, representing a fully diluted equity value of approximately $176 million. The transaction was unanimously approved by the Boards of Directors of both companies.

Under the terms of the definitive merger agreement, Altair will commence a tender offer within ten business days to acquire all of the outstanding shares of common stock of Datawatch for $13.10 per share in cash. This represents a 35% percent premium to the closing price of Datawatch’s common stock on November 2, 2018. The tender offer is subject to customary closing conditions, including the tender of at least a majority of the outstanding shares of Datawatch common stock and the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Following the closing of the tender offer, a wholly-owned subsidiary of Altair will merge with and into Datawatch, with each share of Datawatch common stock that has not been tendered being converted into the right to receive the same $13.10 per share in cash offered in the tender offer. The transaction is anticipated to close in the fourth quarter of 2018.

Funding for the transaction will come primarily from cash, coupled with utilization of borrowings under Altair’s existing credit facility.

Lowenstein Sandler advised Altair with a team including Peter H. Ehrenberg (Picture), Michael J. Mueller, Elizabeth A. Mandle, Justin Gindi, Colin J. Kirby, Valeska Pederson Hintz, Kate Basmagian, Lauren E. Killeen, Darren Goodman, Megan Monson, Brian A. Silikovitz, Sophia Mokotoff, Mark P. Kesslen, Manali Joglekar, Leah Satlin, Jeffrey Blumenfeld, Jack Sidorov, Jeffrey M. Shapiro, Lynda A. Bennett, Eric Jesse, Lowell A. Citron, Lauren M. Troeller, and Erica Perlmutter.

Involved fees earner: Robert Jahrling III – Choate; John Pitfield – Choate; Tobin Sullivan – Choate; Ryan DeSisto – Choate; Zachary Heath – Choate; Alex Bossone – Choate; Peter Ehrenberg – Lowenstein Sandler LLP; Michael Mueller – Lowenstein Sandler LLP; Elizabeth Mandle – Lowenstein Sandler LLP; Justin Gindi – Lowenstein Sandler LLP; Valeska Pederson Hintz – Lowenstein Sandler LLP; Colin Kirby – Lowenstein Sandler LLP; Kate Basmagian – Lowenstein Sandler LLP; Lauren Killeen – Lowenstein Sandler LLP; Colin Kirby – Lowenstein Sandler LLP; Darren Goodman – Lowenstein Sandler LLP; Megan Monson – Lowenstein Sandler LLP; Brian Silikovitz – Lowenstein Sandler LLP; Sophia Mokotoff – Lowenstein Sandler LLP; Mark Kesslen – Lowenstein Sandler LLP; Manali Joglekar – Lowenstein Sandler LLP; Leah Satlin – Lowenstein Sandler LLP; Jeffrey Blumenfeld – Lowenstein Sandler LLP; Jack Sidorov – Lowenstein Sandler LLP; Jeffrey Shapiro – Lowenstein Sandler LLP; Lynda Bennett – Lowenstein Sandler LLP; Eric Jesse – Lowenstein Sandler LLP; Lowell Citron – Lowenstein Sandler LLP; Lauren Troeller – Lowenstein Sandler LLP; Erica Perlmutter – Lowenstein Sandler LLP;

Law Firms: Choate; Lowenstein Sandler LLP;

Clients: Altair Engineering Inc; Datawatch Corporation;

Author: Ambrogio Visconti