Computer direct marketer Insight Enterprises Inc., Tempe, AZ, has been able to favorably renegotiate the terms of its merger agreement with U.K.-based computer DMer Action Computer Supplies Holdings plc.
The new merger terms call for holders of Action stock to receive 12% of a share of Insight common stock for each Action share, down from 16% in the original deal announced last May. Insight attributed these terms to “weaker operating results recently experienced by Action.”
With the revision, Insight expects to issue approximately 4.23 million new shares, representing 14.2% ownership of the company by Action shareholders. Previously, Insight expected to issue about 5.64 million new shares, representing 18.1% ownership of the company.
The merger will be completed in October.
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