FRAMINGHAM (04/10/2000) - Manufacturing software vendor System Software Associates Inc. (SSA) will sell almost all of its assets to a newly formed subsidiary of Gores Technology Group, the companies said in a statement.
Los Angeles-based Gores Technology buys and manages technology companies. It will acquire SSA's assets for approximately $52 million in cash and 25% of the common stock of the newly formed subsidiary, the companies said Friday.
The proposed deal will involve a voluntary Chapter 11 bankruptcy protection proceeding by SSA on or about April 14, the companies said. The proceeding won't include SSA's subsidiaries.
Chicago-based SSA said it expects it will have to use all of the cash from the sale closing to pay its senior secured lenders and administrative claims, leaving 24% of the common stock from the subsidiary available for claims of unsecured creditors in bankruptcy. The company doesn't expect any distribution to its holders of equity securities.
The sale will close within 45 to 60 days. It is subject to completion of the definitive agreement and approval from bankruptcy court and SSA's senior secured lenders.
SSA offers enterprise resource planning software for the industrial sector.