-
Website
http://www.dannorris.com/ -
Original page
http://www.dannorris.com/2008/01/23/acquisition-wednesday-round-2-indian-firm-rolta-buys-tusc/ -
Subscribe
All Comments -
Community
-
-
Top Commenters
-
Popular Threads
So wait, does this mean that the options I was granted while I worked there are worth something now? :-)
Also, interesting that after years of "The American Way", they sell to an Indian firm.
I agree--others have commented similarly (to me via other channels) about the value. One must conclude that maybe they shrunk? I suppose we'll all have to tune in for the first full quarter's financial report. Now that they're public, I expect that much more will be known about their *real* finances. Private companies can say almost anything with little evidence to back it up.
One argument that was made to try and keep me was that they were 'protecting me' from just such a fate as this. Of course, I was also told that the turnover was the lowest in the industry, but 4 of the 6 staff in the office where I worked have left in the past 4 months. Three of those left just to escape a supervisor whose flaws management refused to address. To be fair, the staff are talented and hard working. The owners ARE generous. But I digress...
As for the revenue, the vast majority comes from consulting, followed by remote services and then other bits and pieces, of which software represents a small piece. I've been discussing with other 'ex'es and we think it was a fire sale, based on the revenue goals for last year. I can't understand it either.
When were the options given to you?
What is the duration of time the options are valid? (Expiration)
How long does it take for your options to be vested? If they gave you 10,000 per year, maybe 25% of those are vested after the first year. Another 25% after the second year etc. So you'd stay for 4 years before you had 100% of the 10,000 shares. However the next year they gave you another 10,000, of which 25% vested after one year and on and on it goes. So you have to figure out how many options you have that are actually vested at the time you left the company.
How many total options are there? Take 45,000,000 and divide it by the total number of share should provide a value per share.
To sum it up, depending on when you received your shares. Even if they're vested, they may have expired. Best thing to do is to find your contracts and wait for a letter to come in the mail explaining what they say you own and what you can do with them. Odds are that you'll have the ability to roll the TUSC options into the India company's public options or cash out.
@Anon I absolutely would not wait for any letters from TUSC as I simply don't think that non-employees will ever get a letter. I heard that the purchase price was $1.02 per share. So, you'd have to see what your option strike price was to compute the possible payout. If your strike price was $1.00 and you had 10,000 shares, then you'd stand to cash in $200. Of course, I didn't find my paperwork yet, so I can't comment on whether I agree with your opening statement or not.
I've been through a couple of similar buyouts as an employee. Seems to me that the letter / vested options are a legal issue as a shareholder so whether a person is currently employed shouldn't matter. Guess it is something to have an attorney review.
The options (which I think were last granted in 2004) vested 1/4 each year. Further, options expire on the 10th anniversary of the grant date. Options would also become exercisable if the company IPOd and would become half-vested immediately if there was a change of ownership.
So here's how I read it. Because they waited until after January 1 all of the options granted would be exercisable.
Play the numbers. At $1.02 per share you'd be making money off of every share. Since this is a change of control, you have to tender the shares to the company.
I still don't see anything in this about giving up exercise rights.
As for the sale price...
The owners saw the company through the last downturn around 2000. Since many market analysts are using the 'R' (recession) word as if it's inevitable they may have decided it was worth selling for somewhat less than they may have ultimatley been able to fight for just to avoid another such period of stress. Just a thought...
all a little surprised too. Sounds like things are going well for them
so far, though.