Second fastest-growing firm in Central Mass. considering $62M buyout offer
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ConnectM Technology Solutions is located at 2 Mount Royal Ave. in Marlborough.
One of Central Massachusetts’ fastest-growing companies is considering a buy-out offer from a group of its three largest institutional investors, as the two sides seem to be settling on a $62-million price.
ConnectM Technology Solutions announced on April 3 it had received a $46.5-million offer to be acquired by a group of investors SriSid LLC, Arumilli LLC, and Win-Light Global Co. Ltd., which had begun their investments into the Marlborough-based green energy technology company in 2020.
On Friday, ConnectM announced it had counteroffered a $62-million price, which was calculated based on a $1.60-per-share price for its 38.8 million shares.
The group of investors plan to move forward with an offer at the new $62-million price, according to ConnectM. If the buyout is approved by ConnectM’s board and management team, ConnectM would transition to become a privately held company.
ConnectM did not reply to WBJ’s request for comment.
In August, ConnectM was named the second-fastest growing company in Central Massachusetts and 104th in the nation out of 5,000 by Inc. magazine.
The company’s most recent announcement comes after Subrahmanyam Kota IRRV Trust acquired approximately 3.5% of ConnectM's outstanding common stock, totalling ConnectM’s institutional ownership of outstanding shares at 49.9%, according to an April 4 press release.
ConnectM’s board and management team have hired ThinkEquity, a New York City-based investment bank, to serve as its non-exclusive financial advisor.
The buyout group initially submitted its offer on March 31, which included investors SriSid LLC, Arumilli LLC, and Win-Light Global Co. Ltd. At the time, the investor group had recently significantly increased its ownership positions, according to an April 2 press release from ConnectM.
The buyout update comes after ConnectM received notice in March it will be removed from the Nasdaq stock market for failure to meet the $50-million market value required of listed securities. The firm stated it planned to request an appeal before the Nasdaq panel.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.
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