Pegasus Solutions has announced that it intends to make an offer to the shareholders of HARS Systems to purchase all outstanding common shares of HARS at a cash price of CAD 0.62 per share, subject to Pegasus signing additional lock-up agreements with shareholders representing approximately 5.7 million of HARS` outstanding shares by May 27, 2002.
Headquartered in Calgary, Canada, HARS provides reservation distribution services to hotels and car rental companies around the world through its wholly owned subsidiary, VIP International Corp.
is a leading provider of technology services to the hotel industry.
The first in an anticipated series of lock-ups, Pegasus has entered into a lock-up agreement with one of HARS` major shareholders, Executive Inn Inc., for 6,788,377 common shares representing 32.7 percent of HARS` outstanding common shares. At the expected bid price, the transaction will be valued at approximately $14 million CAD. The offer will be subject to customary conditions, including Pegasus acquiring at least 75 percent of the outstanding shares of HARS prior to the expiry of the offer, due diligence and no material adverse change having occurred at HARS. Pegasus Solutions`
Chief Executive Officer and Chairman of the Board John F. Davis
, III said, “We are impressed with VIP`s growth and performance and believe it would be an excellent complement to our current Utell and Reservation Services businesses. VIP`s portfolio of properties should also provide cross selling opportunities for our Commission Processing and PegasusCentral hospitality management services.”
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