Comverge Going Private (COMV)

March 26, 2012 by Paul Ausick

Comverge Inc. (NASDAQ: COMV), a maker of intelligent control systems for electricity utilities and their customers, has agreed to be taken private by an affiliate of private equity firm H.I.G. Capital LLC for a price of about $49 million, or $1.75/share. Shares closed Friday at $1.88.

The company didn’t have any choice:

The transaction addresses the risks associated with the Company’s liquidity position, provides for our financial viability going forward and allows Comverge to continue to execute on its business plan with the financial backing of H.I.G. Capital.

Shareholders won’t be happy with these deal, and the shareholder law firms are already lining up. But Comverge may have had no choice — the company’s auditors released a “going concern” letter about 10 days ago and the company said it had received default notices from some lenders.

Shares are down about -7.5% at $1.74.