IT

Alebra Technologies Inc.

by

April 29, 2013

 Minnesota-based software company offers 25% of their share

 

Alebra Technologies is a IT business whose Parallel Data Movement software vastly improves performance of network infrastructure through streamlining data movement.  In fiscal 2012, Alebra posted positive earnings and revenues were approaching $2mm.

TIS Preservation & Growth Fund (the “Fund”) (managed by Gathouse Capital) holds 228,801 shares of Alebra Series B Preferred Stock, representing approximately 25% of the preferred shares outstanding and a fully diluted 5.6% position. These shares have voting rights, convert to 2.5 common shares, yield a 7.14% cumulative (stock) dividend, have a $4 par value and represent the senior security in Alebra’s capital structure.

As at December 31, 2012 the preferred shares were valued at $4.06, based on the Enterprise Value to Revenue approach. The value of Alebra’s software will far exceed any multiple on revenues to a strategic buyer.

 

For more information about the deal, please click here.

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