24 Oct 2016 07:00
Not for release, publication or distribution, in whole or in part, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.
BOND INTERNATIONAL SOFTWARE PLC
('Bond' or the 'Company')
Withdrawal of recommendation of Constellation's Final Increased Constellation Offer
Recommendation of STG's further improved terms for the sale of the
Recruitment Software Subsidiaries
and
Recommended Adjournment of General Meeting
Summary
· Withdrawal of the Bond board of directors' recommendation of Constellation's Final Increased Offer of 121p per Company Share (the "Constellation Final Increased Offer")
· Recommendation by Bond's board of directors of further improved terms for the sale of the Recruitment Software Subsidiaries to STG increasing the total consideration payable to Bond to £22.84 million
· The total distribution to Bond Shareholders from the members' voluntary liquidation of the Company after it has completed the Sale and paid all relevant transaction costs and taxes, is anticipated by the Directors to be between 127.0 pence and 129.5 pence per Ordinary Share. The Directors currently anticipate that the initial distribution will be between 126.0 pence and 128.0 pence per Ordinary Share
· The total distribution anticipated is at a premium to the 121 pence per Ordinary Share which the Constellation Final Increased Offer represents
· The Directors have each given an undertaking to vote in favour of the Sale Resolution which, in aggregate, represents 15.94 per cent of the Existing Shares
· It is the intention of the Chairman to adjourn the General Meeting due to take place on 24 October 2016 and reconvene it on or around 11.30 on 31 October 2016
· Completion of the Sale is conditional upon the passing of the Sale Resolution at the reconvened General Meeting (which is intended to take place on or around 31 October 2016) on or before 14 November 2016 (being the completion longstop date in the Sale Agreement)
1. Background to recommendation of STG's further improved terms
On 12 September 2016, the Company announced that it had entered into a conditional agreement with the Purchasers pursuant to which the Company had agreed to sell the entire issued share capital of the Recruitment Software Subsidiaries to the Purchasers for a total cash consideration of £17.25 million, subject to adjustment for Net Debt and Net Working Capital (on a cash free debt free basis) to be calculated through a completion accounts process. This adjustment was expected to increase the cash payable to the Company on completion to £18.4 million.
On 23 September 2016, Bond and Constellation jointly announced the Revised Constellation Offer at 115.5p per Ordinary Share which, at that time, was recommended by the Directors. A copy of the joint announcement relating to the Revised Constellation Offer can be found on the Company's website at www.bondinternationalsoftware.com/investor-info/.
On 28 September 2016, the Company announced that the original general meeting convened for 28 September 2016 would be adjourned to 5 October 2016.
On 5 October 2016, the Company announced that it had entered into a Deed of Amendment with STG in relation to the Sale Agreement pursuant to which STG improved the terms and agreed to pay a total consideration of £19.4 million thereby increasing the cash payable on completion to £20.65 million. STG also agreed to purchase the Courtlands Property for £1.8 million payable in cash on completion. The principal terms of the Deed of Amendment were summarised in the Company's circular to the Bond Shareholders dated 5 October 2016, which also contained a Notice convening a General Meeting for 24 October 2016 to approve the revised terms of the Sale, (the "Sale Resolution"). The Independent Directors recommended that the Bond Shareholders vote in favour of the Sale Resolution, as the total anticipated distribution to the Bond Shareholders from a members' voluntary liquidation of the Company following the sale represented a premium to the Revised Constellation Offer of 115.5p per Ordinary Share.
On 11 October 2016, Constellation announced the terms of the Constellation Final Increased Offer of 121 pence per Ordinary Share to be made by Constellation for the entire issued and to be issued ordinary share capital of Bond not already owned by Constellation or parties acting in concert with Constellation (the "Constellation Final Increased Offer"). The Constellation Final Increased Offer Document was posted to Bond Shareholders on 12 October 2016.
On 19 October 2016 the Directors agreed to recommend the Constellation Final Increased Offer.
Following the announcement of the Company's recommendation of the Constellation Final Increased Offer, STG approached the Directors with an increased offer for the Recruitment Software Subsidiaries. The Company is pleased to announce that it has entered into a New Deed of Amendment with the Purchasers in relation to the Sale Agreement pursuant to which the Purchasers have improved the terms of the purchase of the Recruitment Software Subsidiaries. The Purchasers have agreed to pay a total consideration of £22.84 million thereby increasing the cash payable on completion to £24.1 million. The principal terms of the New Deed of Amendment are summarised below and in paragraph 2 of this announcement.
The Company will send a circular to Bond Shareholders setting out the revised terms in full no later than 25 October 2016.
As a result of the improved terms of the Sale Agreement, the Directors who have been advised by Houlihan Lokey as to the financial terms of the Constellation Final Increased Offer, have given careful consideration to the merits of the Constellation Final Increased Offer and have unanimously withdrawn their recommendation of the Constellation Final Increased Offer. In giving its advice to the Directors, Houlihan Lokey has taken into consideration the Directors' commercial assessments.
The Independent Directors believe that the Sale is in the best interests of the Company and Bond Shareholders as a whole and unanimously recommend that Bond Shareholders vote in favour of the Sale Resolution.
The Sale is deemed to be (i) a 'frustrating action' to the Constellation Final Increased Offer pursuant to Rule 21.1 of the Takeover Code, and (ii) due to its size, a disposal resulting in a fundamental change in the business of the Company pursuant to Rule 15 of the AIM Rules for Companies, and therefore requires the approval of the Bond Shareholders by ordinary resolution at the General Meeting.
The Directors currently anticipate that the total distribution to Bond Shareholders from the members' voluntary liquidation of the Company after it has completed the Sale and paid all relevant transaction costs and taxes, should be between 127.0 pence and 129.5 pence per Ordinary Share which includes the sale proceeds of the Courtlands Property which forms part of the Sale (based on the assumptions set out in paragraph 3 of this announcement and less any initial distribution received). The Directors estimate that the amount of the initial distribution could be increased to between 126.0 pence and 128.0 pence per Ordinary Share. The total anticipated distribution is a premium to the 121 pence per Ordinary Share which the Constellation Final Increased Offer represents (further information on the assumptions of the Directors in relation to the anticipated distribution are set out in paragraph 3 of this announcement).
ACCORDINGLY, THE BOND DIRECTORS ARE OF THE VIEW THAT BOND SHAREHOLDERS SHOULD NOT ACCEPT THE CONSTELLATION FINAL INCREASED OFFER AND SHOULD VOTE IN FAVOUR OF THE SALE RESOLUTION. ANY BOND SHAREHOLDERS WHO HAVE ACCEPTED THE ORIGINAL CONSTELLATION OFFER, THE REVISED CONSTELLATION OFFER AND THE CONSTELLATION FINAL INCREASED OFFER ARE ADVISED TO WITHDRAW THOSE ACCEPTANCES.
The Directors have given an irrevocable undertaking to vote in favour of the Sale Resolution, in respect of a total of 6,751,631 Ordinary Shares representing 15.94 per cent of the Existing Shares. The Directors are permitted to lapse their undertakings in the event a further revised offer from Constellation is announced at 135 pence per Ordinary Share or above, or if the Constellation Final Increased Offer is declared unconditional as to acceptances.
As announced on 11 October 2016, Constellation has informed the Directors that the Constellation Final Increased Offer shall lapse if the Sale Resolution is passed, so Bond Shareholders need to be aware that if they vote in favour of the Sale Resolution and the Sale completes, the Constellation Final Increased Offer shall not proceed.
2. Principal terms of the Deed of Amendment and New Deed of Amendment
The Deed of Amendment and the New Deed of Amendment sets out the improved terms pursuant to which the Company has agreed to sell the entire issued share capital of the Recruitment Software Subsidiaries and the Courtlands Property. The material terms of the revised terms are as follows:
The total cash consideration payable on completion for the Recruitment Software Subsidiaries is now £22.84 million (previously £19.4 million), to be adjusted for Net Debt and Net Working Capital. The estimate of the adjustment is expected to increase the cash payable to the Company on Completion to £24.1 million. This should result in a £3.44 million increase in the overall distribution to Bond Shareholders.
On completion the Purchasers have agreed to purchase the Courtlands Property from the Company for a total consideration of £1.8 million. This reflects the independent valuation provided by Lambert Smith Hampton dated 8 September 2016, a copy of which is available on the Company's website at www.bondinternationalsoftware.com/investor-info/. The sale of the Courtlands Property removes the uncertainty of the total distribution to Bond Shareholders as well as increasing the initial distribution to Bond Shareholders following a members' voluntary liquidation.
In addition, the Purchasers have agreed to procure a Funding Indemnity on completion from the STG IV Funds whereby the STG IV Funds have agreed to indemnify the Company for any contingent liability arising under the Strictly SPA and the Payroll SPA. The financial cap of the Funding Indemnity is limited to £5.3 million which is equal to the maximum aggregate liability of the Company under the warranties and indemnities in the Strictly SPA and the Payroll SPA. The indemnity period of the Funding Indemnity will commence on completion of the Sale and end on 20 August 2017, being the final date by which the Company can be notified of any warranty and indemnity claims under the Strictly SPA and the Payroll SPA.
· Further, the Purchasers have agreed to procure the STG IV Funds to put £3 million in cash into an escrow account on completion of the Sale ("Escrow"), to support the Funding Indemnity. The cash will be available to the Company and the liquidator duly appointed to settle any claims under the Strictly SPA or the Payroll SPA. The Directors believe that the effect of the Funding Indemnity and the Escrow, taken together, is that the liquidator should be able to increase the initial distribution to Bond Shareholders following a members' voluntary liquidation subject to the assumptions set out in paragraph 3 below.
The STG IV Funds are funds managed by Symphony Technology Group, LLC (''STG''). Founded in 2002, STG is a private equity firm focused exclusively on investing in companies in the areas of software, analytics and tech-enabled services. STG has over ~$2 billion of capital under management and its portfolio of companies reports $2.5 billion in revenue and, collectively, has more than 15,000 employees.
Completion of the Sale is conditional upon the passing of the Sale Resolution at the General Meeting (which the Chairman proposes to adjourn to on or around 31 October 2016 (or at any adjourned meeting)) on or before 14 November 2016 (being the completion longstop date in the Sale Agreement), which requires not less than 50 per cent. of votes cast by Bond Shareholders (in person or by proxy) at such meeting.
The Company and the Purchasers can only terminate the Sale Agreement if the Constellation Final Increased Offer is declared wholly unconditional, the Sale Resolution is not passed at the General Meeting (or the adjourned meeting) or at any adjournment of such meeting or by mutual consent of the parties to the Sale Agreement. The Company has agreed to pay the Purchasers a contribution to their reasonable costs and expenses incurred in respect of the Sale, subject to a cap of £350,000, if Bond Shareholders do not approve the Sale.
3. Use of the Sale proceeds and members' voluntary winding up
Assuming completion and the withdrawal or lapse of the Constellation Final Increased Offer, the Company will propose a members' voluntary winding up and liquidation of the Company as soon as practicable with the intention of distributing the Company's net assets to Bond Shareholders. If the Company enters into a members' voluntary liquidation, which will be subject to Bond Shareholders' approval (requiring not less than 75 per cent of the votes cast by Shareholders at the general meeting to vote in favour in person or by proxy), it is likely that there will be an initial cash distribution to Bond Shareholders, with subsequent distributions to be made once the creditors of the Company have been discharged. Whilst the amount and timing of any initial distribution will be determined by the liquidator after the Company enters into a members' voluntary liquidation, the Directors estimate that the amount of that initial distribution could be increased to between 126.0 pence and 128.0 pence per share. The increase in the initial distribution is based on the increase in the cash consideration and the assumption that the liquidator will advance a further £5.3 million as a result of the Funding Indemnity and Escrow. The Directors understand that the liquidator would expect to make a first distribution to Bond Shareholders shortly after 4 weeks from the commencement of the liquidation which is currently anticipated to commence on or around mid-December 2016.
Due to the Funding Indemnity and the Escrow, the principal remaining creditors and contingent liabilities of the Company following the disposals of its assets will relate to the professional fees in respect of the disposal of its assets and payments required on termination of the Directors' service contracts. Bond Shareholders should note that, pursuant to the Funding Indemnity and as set out in paragraph 2, the STG IV Funds have agreed to indemnify the Company for its liability arising under the Strictly SPA and the Payroll SPA. Further, the Escrow will support the Funding Indemnity which should enable the liquidator to increase the amount of the initial distribution to Bond Shareholders as stated above. In addition, the Company has incurred transaction costs of approximately £2.15 million in relation to the Sale, the sale of Strictly Education Limited, the sale of the Payroll Subsidiaries and the Constellation Offer, the Revised Constellation Offer and the Constellation Final Increased Offer.
The Directors currently anticipate that the total distribution to Bond Shareholders from the members' voluntary liquidation should be between 127.0 pence and 129.5 pence per Ordinary Share (based on the assumptions set out in this paragraph 3 and less any initial distribution received). The calculation of this total anticipated distribution is based on the knowledge of the Directors at the time of this announcement and certain assumptions, including that (i) the resolution to approve the members' voluntary liquidation is passed; and (ii) no significant costs are incurred in excess of the transaction costs stated above.
Bond Shareholders should also note that there are a number of factors which could cause the amount of the final cash distribution(s) from a liquidation to differ materially from those currently estimated by the Board, including: market conditions, final disposal and liquidation costs, liabilities arising which the Directors were not aware of at the date of this announcement and the computation of all taxes payable as a result of the disposals and liquidation.
4. Recommendation not to accept the Constellation Final Increased Offer
In light of the New Deed of Amendment, the Directors have given further consideration to the merits of the Constellation Final Increased Offer and, having been so advised by the Company's financial advisers, Houlihan Lokey, as to the financial terms of the Constellation Final Increased Offer, have concluded that Bond Shareholders should not accept the Constellation Final Increased Offer and accordingly, withdraw their recommendation of the Constellation Final Increased Offer.
The Directors unanimously anticipate that the total distribution to Bond Shareholders from a liquidation of the Company after it has completed the Sale, and paid all relevant transaction costs and taxes, should be between 127.0 pence and 129.5 pence per Ordinary Share (based on the assumptions set out in paragraph 3 and less any initial distribution received), which is a premium to the 121 pence per Ordinary Share which the Constellation Final Increased Offer represents (further information on the assumptions of the Directors in relation to the anticipated distribution are set out in paragraph 3).
Bond Shareholders should note that the Constellation Final Increased Offer is conditional on, inter alia, no member of the Existing Group having either (i) entered into an unconditional binding commitment; or (ii) entered into a binding conditional contract in respect of which all conditions have been fulfilled, which, when aggregated together with any and all other binding commitments entered into by members of the Existing Group would, upon completion of such commitments, result in the disposal by the Existing Group of all or substantially all of the assets of the Recruitment Software Subsidiaries (whether by way of asset sale, share sale or otherwise). As announced on 11 October 2016, Constellation has informed the Directors that the Constellation Final Increased Offer will lapse if the Sale Resolution is passed.
If Constellation declares the Constellation Final Increased Offer unconditional as to acceptances the Constellation Final Increased Offer must remain open for acceptances for at least a further 14 days. Bond Shareholders who have validly withdrawn their acceptances of the Original Constellation Offer or the Revised Constellation Offer Constellation Final Increased Offer will then be able to accept Constellation Final Increased Offer if they so wish.
In light of the Company's entry into the New Deed of Amendment, the Takeover Panel has agreed with the Company that Constellation may seek to implement a revised timetable for the Constellation Final Increased Offer so that the last date by which the Constellation Final Increased Offer can be declared unconditional as to acceptances is extended beyond 26 October 2016.
If Constellation declares that the Constellation Final Increased Offer has lapsed on 26 October 2016 due to the acceptance condition of the Constellation Final Increased Offer not having been met, and does not further extend the deadline for acceptance of the Constellation Final Increased Offer beyond 26 October 2016 (which it may seek to do pursuant to Rule 31.9 of the Takeover Code with the consent of the Takeover Panel), the Constellation Final Increased Offer shall not be capable of becoming or being declared unconditional. Save in the permitted circumstances in Rule 35.1 of the Takeover Code, neither Constellation nor anyone acting in concert with Constellation will be permitted to announce an offer or possible offer for the Company within 12 months from the date on which such offer is withdrawn or lapses.
5. General Meeting
The General Meeting due to be held to approve the Sale Resolution at 11.30 a.m. on 24 October 2016 at the offices of Memery Crystal LLP, 44 Southampton Buildings, London, WC2A 1AP. It is the current intention of the Chairman to adjourn the General Meeting to on or around 11.30 a.m. on 31 October 2016 at the offices of Memery Crystal LLP, 44 Southampton Buildings, London, WC2A 1AP at which an ordinary resolution will be proposed to approve the sale of the Company's shareholdings in the Recruitment Software Subsidiaries in accordance with the terms of the Sale Agreement (as amended by the New Deed of Amendment).
The proposed adjournment will permit the Board sufficient time to post a circular to Bond Shareholders explaining the details of the revised terms of the Sale and enable the Bond Shareholders to submit or amend their proxy votes as a result of the revised terms of the Sale.
It is further noted that, due to the improved terms in relation to the Sale, the general meeting originally due to take place on 28 September 2016 (the "Original General Meeting"), which had been adjourned to 5 October 2016 and then again until further notice, would be adjourned indefinitely (sine die). Bond considers that the ordinary resolution to be voted upon at the General Meeting replaces the ordinary resolution to be originally voted upon at the Original General Meeting.
6. Directors' recommendation in respect of the Sale Resolution and withdrawal of recommendation in respect of the Constellation Final Increased Offer
As a result of the improved terms of the Sale Agreement, the Directors, who have been advised by Houlihan Lokey as to the financial terms of the Constellation Final Increased Offer, unanimously recommend that Bond Shareholders do not accept the Constellation Final Increased Offer, and have therefore withdrawn their recommendation of the Constellation Final Increased Offer. In providing advice to the Directors, Houlihan Lokey has taken into account the Directors' commercial assessment.
The Directors recommend that Bond Shareholders take no further action in respect of the Constellation Final Increased Offer, save that Bond Shareholders who have already accepted the Original Constellation Offer or the Revised Constellation Offer or the Constellation Final Increased Offer should withdraw their acceptances.
Instead the Independent Directors believe that the Sale is in the best interests of the Company and Bond Shareholders as a whole and unanimously recommend that Bond Shareholders vote in favour of the Sale Resolution.
The Directors have irrevocably undertaken to, and procured that their wives (if applicable) will, vote in favour of the Sale Resolution, in respect of a total of 6,751,631 Ordinary Shares representing 15.94 per cent of the Existing Shares. The Directors are permitted to lapse their undertakings in the event a further revised offer from Constellation is announced at 135 pence per Ordinary Share or above, or if the Constellation Final Increased Offer is declared unconditional as to acceptances.
MAR
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain. A copy of this announcement and the Circular can be viewed at www.bondinternationalsoftware.com.
For further information, please contact:
Bond International Software plc: Tel: 01903 707070
www.bondinternationalsoftware.com
Steve Russell: Group Chief Executive
Bruce Morrison: Group Finance Director
Buchanan: Tel: 020 7466 5000
Richard Darby
Steph Watson
Houlihan Lokey Capital, Inc. (Financial adviser)
Thomas Bailey Tel: 001 404 495 7056
Cenkos Securities plc (Nomad) Tel: 020 7397 8900
Stephen Keys
Camilla Hume
This announcement is for information purposes only. It is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise.
Houlihan Lokey Capital, Inc. ("Houlihan Lokey") is acting exclusively for the Company and no one else in connection with the matters referred to in this announcement. Houlihan Lokey will not be responsible to anyone other than the Company for providing the protections afforded to clients of Houlihan Lokey or for providing advice in relation to the matters referred to in this document. Houlihan Lokey has given and not withdrawn its written consent to the issue of this announcement with the inclusion herein of the references to its name in the form and context in which it appears.
Overseas jurisdictions
The release, publication or distribution of this announcement in or into, jurisdictions other than the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes who are not resident in the United Kingdom should inform themselves about, and observe, any applicable restrictions. Bond Shareholders who are in any doubt regarding such matters should consult an appropriate independent adviser in the relevant jurisdiction without delay. Any failure to comply with such restrictions may constitute a violation of the securities laws of any such jurisdiction.
This announcement has been prepared for the purposes of complying with the Takeover Code and the AIM Rules and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws or regulatory requirements of jurisdictions outside the United Kingdom. The statements contained in this announcement are not to be construed as legal, business, financial or tax advice.
Forward-looking statements
This announcement contains statements that are or may be forward-looking with respect to the financial condition, results of operations and businesses and achievements of the Company. These statements can be identified by the use of forward-looking terminology such as "believe", "anticipate", "expects", "prospect", "estimated", "should", "may" or the negative thereof, or other variations thereof, or comparable terminology indicating expectations or beliefs concerning future events. These forward looking statements include risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors which could or may cause actual results, achievements or developments to differ materially from those expressed or implied by such forward-looking statements. The Company assumes no obligation to update or correct the information contained in this announcement, whether as a result of new information, future events or otherwise, except to the extent required by law or regulation.
Disclosure requirements
Under Rule 8.3(a) of the Takeover Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.
Under Rule 8.3(b) of the Takeover Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s), save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.
If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.
Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).
Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Takeover Panel's Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.
Publication on website
A copy of this announcement will be made available at www.bondinternationalsoftware.com no later than 12:00 noon (London time) on 6 October 2016 (being the Business Day following the date of this Announcement). The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.
Definitions
The following definitions apply throughout this announcement unless the context requires otherwise:
"Bond" or "the Company" Bond International Software plc, a company incorporated in England andWales with registered number 2142222
"Bond Australia" Bond International Software Pty Limited;
"Bond Hong Kong" Bond International Software China Ltd;
"Bond Japan" Bond International Software KK;
"Bond Non-Voting Convertible Shares" non-voting convertible shares of one penny each in the capital of Bond;
"Bond Singapore" Bond International Software (Singapore) Pte. Ltd;
"Bond UK" Bond International Software (UK) Limited;
"Bond US" Bond International Holdings Inc.;
"City Code" The City Code on Takeovers and Mergers issued by the Panel on Takeovers and Mergers;
"Constellation" Constellation Software UK Holdco Limited, a company incorporated in England and Wales with registered number 9206065 whose registered address is at The Mill, Staverton, Trowbridge, Wiltshire BA14 6PH;
"Courtlands Property" Courtlands, Parklands Avenue, Goring-By-Sea, West Sussex BN12 4NG registered at Her Majesty's Land Registry with title number WSX203942;
"Directors" or "Board" the board of directors of the Company from time to time;
"Deed of Amendment" the deed of amendment dated 5 October 2016 between the Company and the Purchasers, amending the terms of the Sale Agreement
"Escrow" the escrow account of £3 million to be set up by the Purchasers on completion of the Sale
"Existing Shares" the 42,358,403 Ordinary Shares in issue at the date of this document
"Final Increased Offer" the revised cash offer made by Constellation UK at 121p per Ordinary Share to acquire the whole of the issued and to be issued share capital of Bond not otherwise held by Constellation UK and parties acting in concert with Constellation UK on the terms and subject to the conditions set out in the Final Increased Offer Document, including, where the context so requires, any subsequent revision, variation, extension or renewal of such offer;
"Final Increased Offer Document" the offer document dated 12 October 2016 sent to Ordinary Shareholders in respect of the Final Increased Offer;
"FMP" FMP Bidco Limited;
"Funding Indemnity" the deed of indemnity dated 5 October 2016 between the Company, STG IV, L.P. and STV IV-A, L.P relating to the Company's liability under the Strictly SPA
"General Meeting" the General Meeting to be held at 11:30am on 24 October 2016 (to be adjourned);
"Houlihan Lokey" Houlihan Lokey Capital, Inc.;
"Independent Directors" Martin Baldwin, Richard Hall and Stephen Russell;
"Net Debt" the amount by which indebtedness of the Recruitment Software Subsidiaries exceeds or is less than its cash balances;
"Net Working Capital" the amount by which working capital of the Recruitment Software Subsidiaries exceeds or is less than a target working capital agreed between the parties;
"New Deed of Amendment" the deed of amendment dated 21 October 2016 between the Company and the Purchasers, amending the terms of the Sale Agreement
"Non-US Recruitment Software Subsidiaries" Bond UK, Bond Japan, Bond Singapore, Bond Hong Kong and Bond Australia;
"Ordinary Share" ordinary shares of 1 pence each in the capital of the Company;
"Original Constellation Offer" the cash offer made by Constellation UK at 105p per Ordinary Share to acquire the whole of the issued and to be issued share capital of Bond not otherwise held by Constellation UK and parties acting in concert with Constellation UK on the terms and subject to the conditions set out in Original Offer Document;
"Original Offer Document" the offer document dated 18 August 2016 sent to Ordinary Shareholders in respect of the Original Offer;
"Panel" the Panel on Takeovers and Mergers;
"Payroll Purchaser" FMP Global Bidco Limited, a limited liability company incorporated in England and Wales with registered number 10024670, indirectly controlled by Tenzing PE Coinvest I LP
"Payroll SPA" the sale and purchase agreement dated 21 July 2016 between the Company and the Payroll Purchaser relating to the sale and purchase of the shares of the Payroll Subsidiaries
"Payroll Subsidiaries" Bond HR and Payroll Software Limited, Bond Payroll Services Limited and Eurowage Limited
"Purchasers" Bond US Inc. and Hockliffe Limited;
"Recruitment Software Subsidiaries" Non-US Recruitment Software Subsidiaries and Bond US;
"Revised Constellation Offer" the revised cash offer made by Constellation UK at 115.5p per Ordinary Share to acquire the whole of the issued and to be issued share capital of Bond not otherwise held by Constellation UK and parties acting in concert with Constellation UK on the terms and subject to the conditions set out in this documents, including, where the context so requires, any subsequent revision, variation, extension or renewal of such offer;
"Sale" the proposed sale of the Recruitment Software division to Symphony Technology Group, LLC (as amended by the New Deed of Amendment);
"Sale Agreement" the conditional sale and purchase agreement between Bond and the Recruitment Purchasers;
"Sale Resolution" resolution to approve the Sale at the General Meeting (or the adjourned meeting);
"STG" Symphony Technology Group, LLC; and
"Strictly SPA" the sale and purchase agreement between Bond and Education Service Solutions Limited.