(Adds comment from investor, context; updates shares)

May 31 (Reuters) – Dye & Durham Ltd, a Canadian
cloud-based software maker, has received a buyout offer from a
management-led shareholder group worth about C$3.4 billion ($2.8
billion), less than a year after its flotation on the Toronto
Stock Exchange.

The offer to take Dye & Durham private for C$50.5 per share
represents a premium of roughly 23% to its closing price of
C$40.99 on Friday, and is some seven times more than the price
of C$7.50 set in last year’s initial public offering.

Shares of the company closed up 17.7% at C$48.24 on Monday.

Dye & Durham said in a statement that a newly formed special
committee of independent directors would explore and evaluate
potential strategic alternatives, including a merger, the sale
of the company or its parts, and the sale of some of its assets,
among other options.

It did not say how the offer was being financed and who
among its management and shareholders were supporting it. The
company declined to comment further.

Asset manager Mawer Investment Management, whose clients
hold about 9% of the outstanding Dye & Durham shares, said the
offer price was too low.

“Our position is either there needs to be a higher offer
that, in our opinion, is meaningfully higher or our position is
that the best interest of the company is to be public,” Jeff Mo,
portfolio manager at Mawer, told Reuters.

Led by chief executive Matthew Proud, Dye & Durham makes
technology products for legal and business professionals,
providing them access to government registry data, and
simplifying the document search process, its website shows. It
has operations in Canada, the United Kingdom, Ireland and

It acquired https://www.newswire.ca/news-releases/dye-amp-durham-acquires-future-climate-info-for-94-million-850233386.html
Future Climate Info Ltd, a UK-based company that provides legal
professionals with environmental reports meant to aid in
property transactions, for about C$94 million earlier this

The company also acquired https://www.newswire.ca/news-releases/cloud-based-terrafirma-acquired-by-dye-amp-durham-for-20-million-868523833.html
UK property technology business Terrafirma IDC Ltd for about
C$20 million earlier this month.

It said it has access to more than C$1.0 billion in capital
which it plans to deploy on accretive acquisitions.

Dye & Durham said it expects C$220 million in annualized pro
forma earnings before interest, taxes, depreciation and
amortization following recent acquisitions and reflecting its
business performance.

Last year, Proud and his brother, Tyler Proud, executive
chairman of technology firm Avesdo Inc, led a failed C$58
million bid for Torstar Corp, the publisher of the Toronto Star.

($1 = 1.2072 Canadian dollars)
(Reporting by Sohini Podder in Bengaluru
Editing by David Holmes and Rosalba O’Brien)