DETROIT — The Detroit software and IT services provider Covisint Corp. (Nasdaq: CPWR) Fridya announced the completion of the distribution of its 31,364,920 remaining shares in the secure collaboration technology provider Covisint Corp. (Nasdaq: COVS) to Compuware shareholders.
Based on the number of Compuware shares outstanding, as well as shares due under stock option agreements, Compuware shareholders got 0.14025466 shares of Covisint stock for each share of Compuware they owned as of Oct. 20.
Fractional shares due Compuware shareholders were sold on the open market and the net proceeds will be distributed to shareholders in cash.
Compuware said the spinoff is expected to be taxable.
The distribution is part of Compuware’s $2.5 billion buyout by a by a Chicago-based private equity firm, Thoma Bravo LLC.
Covisint was initially established by the Detroit Three automakers in 2000 as an online marketplace. Compuware acquired it in 2004. The company has since expanded into secure, online collaboration in other industries, including health care and oil and gas.
Established in 1973, Compuware has business units in mainframe test and debugging software and application performance management and monitoring software that keeps track of how well applications are running on the internet and mobile devices. The company has about 3,000 employees, down from a peak of 15,000 in 2000, during a foray into IT services surrounding Y2K bug repairs.
More at http://www.compuware.com.