BRIEF: Software firm MakeMusic sold to largest shareholder
Mar 13, 2013 (Menafn - Pioneer Press - McClatchy-Tribune Information Services via COMTEX) --MakeMusic Inc., an Eden Prairie publisher of music software, said Wednesday, March 13, that it will be bought by its largest shareholder for 23.8 million.
LaunchEquity Partners LLC, a venture capital firm, set up an affiliate to acquire MakeMusic in an all-cash deal for 4.85 a share, the music company said. The deal represents a premium of 31 percent over the stock's 3.70 closing price Tuesday, the company said.
MakeMusic's stock price rose by 1.11 or 30 percent to 4.81 in Wednesday morning trading.
LaunchEquity owned 27.8 percent of the outstanding stock of MakeMusic as of Tuesday, and it made an offer to buy the company last July for 13.5 million. Former MakeMusic CEO Karen van Lith resigned in June.
MakeMusic on Wednesday reported a fourth quarter loss of 1.3 million compared to a profit of 694,000 for the same period in 2011.
Revenue for the quarter ending Dec. 31 fell 20 percent to 4.7 million, the company said.
For the full year 2012, MakeMusic said it lost 3.7 million compared with a net earning of 4,000 in 2011. Revenue last year was 17.7 million, down 4 percent from 2011, the company said.
Leslie Brooks Suzukamo can be reached at 651-228-5475. Follow him at twitter.com/suzukamo.
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