TechTarget Begins Tender Offer To Repurchase Up To 6.50 Mln Shares At $5/shr

(RTTNews) - TechTarget Inc. (TTGT) announced Wednesday that it has commenced a tender offer to repurchase up to 6.50 million shares of its common stock at a price of $5.00 per share. The number of shares proposed to be purchased in the tender offer represents about 16.79% of the about 38.72 million shares of TechTarget's common stock issued and outstanding as of September 19, 2013. The last reported sale price of TechTarget's common stock on September 23, 2013 was $4.79 per share.

The company noted that the tender offer will expire at 5:00 p.m., New York City time, on October 24, 2013, unless extended by the company.

On the terms and subject to the conditions of the tender offer, TechTarget's stockholders will have the opportunity to tender some or all of their shares at a price of $5.00 per share. If stockholders properly tender and do not properly withdraw more than 6.50 millionshares, TechTarget will purchase shares tendered by those stockholders owning fewer than 100 shares, without pro ration, and all other shares tendered will be purchased on a pro rata basis, subject to the conditional tender offer provisions described in the Offer to Purchase that is being distributed to stockholders, the company said.

The firm noted that Stockholders whose shares are purchased in the tender offer will be paid $5.00 per share, net in cash, less any applicable withholding taxes and without interest, promptly after the expiration of the tender offer period.

As of September 19, 2013, TechTarget had approximately $62 million in cash and cash equivalents. TechTarget will use a portion of its cash and cash equivalents to fund the tender offer.

The company also announced today that, effective as of immediately prior to the commencement of the tender offer, its Board of Directors has terminated the Stock Repurchase Program that was approved on August 7, 2012.