Seattle-based device management company Bsquare Corp. (Nasdaq: BSQR) is being acquired by Kontron, an Internet-of-Things company based in Germany.
Kontron is paying $1.90 per share of Bsquare stock for a total price of roughly $38 million in cash. The companies announced the deal Oct. 11 and expect it to close later this year.
"Bsquare's business will combine naturally with Kontron's IoT hardware products and services to create a more complete solution for our customers," Bsquare CEO Ralph Derrickson said in a new release. "The acquisition provides liquidity for Bsquare shareholders while providing scale and efficiency for the business."
A Bsquare spokesperson said the company wasn't commenting beyond the release. Both boards have approved the deal, according to the release, and the deal price is a 62% premium on Bsquare's 52-week volume-weighted average for its closing stock price as of Oct. 10. Bsquare will become a private company and stop trading on the Nasdaq after the deal closes.
Bsquare, founded in 1994, went public in 1999. The company manages internet-connected devices like point-of-sale machines, self-serve kiosks and digital signs. Bsquare also allows clients to run diagnostics, make upgrades and remotely shut down devices.
In December, Bsquare announced it was laying off about 20% of its staff in a move expected to finish in the first quarter of this year. The company had 44 employees as of the end of last year, according to a regulatory filing. Bsquare generated $6.5 million in revenue during the second quarter, down from $10.4 million during the second quarter of last year.
Kontron, meanwhile, offers hardware and software to help clients manage internet-connected devices. The company offers services for industries like communications, defense and health care. According to a release, Kontron has about 4,500 employees and subsidiaries in more than 20 countries.
"The acquisition of Bsquare is an important step to strengthen our software development, marketing and integration in North America," Kontron CEO Hannes Niederhauser said in the release.
