Southfield-based TechTeam Global Inc. (Nasdaq: TEAM) has agreed to cut the price of its Government Solutions business unit by nearly 30 percent.
TechTeam reached an agreement June 3 to sell TechTeam Government Solutions Inc. for $59 million in cash, subject to some adjustments, to Jacobs Engineering Group of Pasadena, Calif.
On Aug. 30, TechTeam announced that Jacobs Engineering believed that the subsidiary’s business had “declined significantly” after the announcement of the June 3 agreement and that it had the right to terminate the agreement.
Wednesday, TechTeam announced an agreement to consummate the deal at the reduced price of $43 million.
TechTeam said that in addition to the reduction in the base purchase price, the parties have also agreed to waive some conditions required to close the deal, including the continued employment of Government Solutions’ employees prior to closing and the procurement of some third party consents. Further, the parties have agreed to extend the date by which the stock purchase agreement may be terminated if the sale has not occurred to Oct. 5 from Oct. 1.
TechTeam said further details will be provided in filings to be made by TechTeam Global with the U.S. Securities and Exchange Commission.
TechTeam shareholders will vote on the amended deal in a special meeting at 10 a.m. Eastern time Tuesday, Sept. 28 in a meeting scheduled for the Langham Hotel, 250 Franklin St., Boston.
Stockholders who have questions about the sale of Government Solutions or need assistance in submitting their proxies or voting their shares should contact The Altman Group Inc., the firm assisting TechTeam Global in the solicitation of proxies, at 1200 Wall St. West, Lyndhurst, N.J. 07071, or call (877) 283-0320.
More at www.techteam.com.
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