Noah Zivitz

Managing Editor, BNN Bloomberg

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Dye & Durham Ltd. has elected to stay the course after rebuffing a management-led privatization attempt.

The Canadian software firm announced in a release early Friday that its board of directors wrapped the strategic review that was triggered by a proposal earlier this year to privatize the company in a deal worth $50.50 per share.

"At a meeting held yesterday, the special committee provided its final report to the board wherein it recommended that Dye & Durham continue to pursue its existing business strategy which contemplates further growth through acquisitions under the leadership of Mr. Mathew Proud, the company's chief executive officer," the company said in its release.

In a separate release minutes later, Dye & Durham said its board has granted Proud 6,851,100 stock options in the interest of better aligning his interests with those of all shareholders. When taking account of pre-existing holdings, Proud now holds options representing an 11.8 per cent stake, assuming full conversion. 

The company also said on Friday that it has secured a new $1.8-billion senior secured credit facility, with proceeds earmarked for paying down existing debt and for future acquisition opportunities. 

"We believe the new facility will give us additional capital flexibility, allowing us to continue to execute on our … strategy," Proud said in the release