Iona shareholders back $162m takeover by Progress Software

SHAREHOLDERS IN Iona Technologies voted overwhelmingly in favour of the company’s acquisition by Progress Software at meetings convened in Dublin yesterday.

The Progress offer of $4.05 (€2.75) a share values the Irish software company at $162 million. During its peak in 2000 the company was worth $1.75 billion and had an annual turnover in excess of $100 million.

The deal will have to be approved by the High Court, at a hearing set for September 10th.

Following its announcement on February 8th last that it had received an unsolicited offer to acquire the company, Iona’s board appointed Lehman Brothers to advise it on a “strategic transaction”. At yesterday’s meeting Iona chairman Kevin Melia said Iona and Lehman spoke to “in excess of 20 companies”.

Mr Melia said the Progress offer was “fair and reasonable and in the best interest of shareholders”. The “certainty” of an all-cash deal was also preferable to one that involved a combination of cash and shares. At the Iona shareholder meeting, convened by the Irish High Court, 91 shareholders voted in favour of the scheme of acquisition and three voted against. At an extraordinary general meeting immediately afterwards, all five resolutions relating to the transaction were passed.

Speaking after the meetings, Mr Melia said Iona’s legacy would live on through the staff who would transfer to Progress, giving them a “bigger playing field” to demonstrate their talents, and through the many technology companies founded by former Iona staff.

He paid tribute to Iona founders Dr Chris Horn, Dr Seán Baker and Annrai O’Toole.

Mr Melia described them as “three young risk-takers”. He said they left secure jobs in Trinity College to start Iona in 1991 and set an example for subsequent technology entrepreneurs.

This article appears in the print edition of the Irish Times