Private investment management firm LaunchEquity Partners has submitted a proposal to NASDAQ-listed music technology company MakeMusic to acquire its operating assets, excluding cash, and assume all related liabilities for $13.5 million.
LaunchEquity and certain of its affiliates currently own roughly 27.7 percent of MakeMusic’s outstanding common stock, and their proposal contemplates that MakeMusic would adopt a plan of liquidation, which would include a distribution of its then-available cash to existing shareholders.
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MakeMusic’s board has appointed a committee of independent directors to review and consider the proposal, and to consider strategic alternatives. Basically, they’ll be deciding if it’s worth for MakeMusic to take the offer and/or remain an independent, public company.
MakeMusic is mostly known for its music notation software suite Finale, which targets composers, arrangers, musicians, teachers and students, and SmartMusic, interactive software that it claims features the world’s largest accompaniment library.
About a month ago, MakeMusic announced that President and CEO Karen van Lith would step down after serving her role for only a year – she was later paid about $380,000 as part of her separation agreement.
Jeff Koch, who served as interim CEO of the company before van Lith signed on, previously ran LaunchEquity Partners and has long been an investor and board member of MakeMusic.
For the three Months ended March 31, 2012, MakeMusic booked a net loss of $840,000 on net revenues of $4.2 million for the quarter.
At March 31, 2012, cash and cash equivalents were $7.7 million.