Saba Software to be taken private by Vector Capital

Reuters News
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Posted: Feb 10, 2015 6:31 PM

(Reuters) - Enterprise software provider Saba Software Inc, whose chief executive and other executives recently settled charges of accounting fraud, said private equity firm Vector Capital would take it private for about $268 million in cash.

Vector offered $9 per share for the Pink Sheets-listed company, which delisted from the Nasdaq in 2013.

The Securities and Exchange Commission said earlier on Tuesday that two former Saba chief financial officers agreed to repay nearly half a million dollars in combined bonuses and stock profits over the fraud, which involved falsified time-sheets by consultants at an Indian subsidiary.

Founder and former Chief Executive Babak "Bobby" Yazdani agreed in September to repay $2.57 million of bonuses, incentive pay and profit from stock sales.

Yazdani, who founded Redwood Shores, California-based Saba in 1997, resigned as CEO in March 2013.

Saba shares closed at $8.80, just before the deal was announced.

Morgan Stanley & Co LLC is financial adviser to Saba, while Morrison & Foerster is legal adviser. Law firm Shearman & Sterling is advising Vector.

(Reporting by Abhirup Roy; Editing by Ted Kerr)