| Tech Stock News and Analysis |
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| Tuesday, December 19, 2006 |
Embarcadero Technologies Inc., a maker of data management software, said Monday an agreement to be acquired by an of affiliate of Thoma Cressey Equity Partners has been ended by mutual agreement.
Embarcadero had agreed to be acquired by EMB Holding Corp. in September in a $234 million deal that valued the company at $8.38 per share.
The company said that both parties have agreed to release all claims they may have against each other and that neither party will have to pay a termination fee.
The companies did not disclose the recent for ending the deal, although Embarcadero's stock had lost about 16 percent of its value after the company said last month it had found evidence that stock option grants made in 2000 and 2001 were backdated.
Monday, the company said it will need to restate its historical results, and financial statements from Jan 2000 through the present should not be replied upon.
Embarcadero added that the issues at the center of the financial restatements represent material weaknesses in the effectiveness of internal control over financial reporting, and it expects to receive an adverse report from its public accountant.
Embarcadero is one of at least 194 companies that have launched internal probes or are under investigation by federal regulators for possibly backdating stock option grants.
Shares of Embarcadero plunged $1.17, or 16.8 percent, to $5.80 trading on the Nasdaq. |
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