KANA deal done
KANA Software has announced the closing of a transaction with an affiliate of Accel-KKR, a technology-focused private equity firm, in which the Accel-KKR affiliate has bought substantially all of KANA's assets and liabilities (other than certain specified assets and liabilities) for a cash purchase price to KANA of approximately $40.82 million, following adjustments based on closing net working capital, net indebtedness, transaction expenses and other adjustments. Of this amount, $1.96 million will be held back in escrow for up to 14 months pending resolution of certain specified contingencies. KANA obtained stockholder approval of the transaction this week at its stockholder meeting.
KANA's current operating business, which includes software, services and licensing, will operate as a privately held company under its current KANA brand. KANA’s OTC Bulletin Board-listed entity will be renamed SWK Holdings Corporation and will continue to be publicly traded. SWK Holdings Corporation will hold the net cash proceeds from the transaction and more than $400 million of net operating loss carry-forwards.
SWK Holdings Corporation's strategic plan will be to enhance stockholder value by pursuing opportunities to acquire one or more profitable businesses. The publicly traded company will not compete with the privately held KANA.