SilverSun and JPE II

SilverSun Stock Surges over 231% as JPE II Pledges $1B Boost

In a significant development for SilverSun Technologies Inc, a prominent business application, technology, and consulting company, its stock has experienced a notable surge on Monday morning, following the announcement that Jacobs Private Equity II (JPE) is set to invest a substantial $1 billion in SilverSun, comprising $900 million from JPE and an additional $100 million from co-investors.

As of the close of Friday’s trading session at $3.67, SilverSun’s stock opened Monday’s session at $8.29, reaching its current trading value of $11.51.

At the time of this publication, SilverSun Technologies Inc stock (SSNT) has witnessed a surge.
SilverSun Technologies Inc
Current Price: $11.51
Change : +7.84
Change (%): (213.59%)
Volume: 25.5M
Source: Tomorrow Events Market Data

Upon the completion of the equity investment, Jacobs Private Equity II will emerge as the majority stockholder of SilverSun. Simultaneously, Jacobs himself will assume the role of Chief Executive Officer and Chairman of the Board of Directors.

The Investment Agreement outlines a comprehensive plan, including the spin-off of the company’s existing business to SilverSun stockholders. The record date for this spin-off is anticipated to be one day prior to the closing of the investment. The remaining entity will evolve into a standalone platform primed for substantial acquisitions in an industry yet to be disclosed, coupled with a forthcoming name change for the company.

In a statement, Jacobs expressed his enthusiasm for building another multibillion-dollar company, stating, “I’m excited to start building another multibillion-dollar company from scratch. Soon, I’ll be providing more information about my new venture and industry, and the strategy we plan to execute.”

With a track record of approximately 500 M&A transactions in his career, Jacobs has successfully built five multi-billion dollar, publicly traded companies to date. These include XPO, Inc., GXO Logistics, Inc., RXO, Inc., United Rentals, Inc., and United Waste Systems, Inc.

Post the equity investment closing, a series of financial maneuvers are set to take place, including the separation (spin-off) of SilverSun’s existing business into SilverSun Technologies Holdings, Inc. The company will also implement an 8:1 reverse stock split before the equity investment closure.

Following these changes, JPE II, Sequoia Heritage, and other co-investors will hold voting, convertible preferred stock and warrants, totaling approximately 99.85% of the common stock of SilverSun on a fully convertible/exchangeable basis.

Additionally, SilverSun plans to declare a $2.5 million aggregate cash dividend to its stockholders based on the same record date, funded from the proceeds received under the Investment Agreement. All transactions detailed in the agreement have received approval from SilverSun’s board of directors and are expected to conclude in 2024, pending SilverSun stockholder approval and the fulfillment of customary closing conditions.

Despite these significant changes, the current management and board of directors, including Mark Meller, SilverSun’s Chief Executive Officer, are expected to retain their roles in the spin-off company and its subsidiaries. The spin-off company will seek a public listing of its shares through a Form 10 registration statement filed with the U.S. Securities and Exchange Commission.

Financial advisors for Jacobs Private Equity II are Goldman Sachs and Morgan Stanley, with legal advice provided by Wachtell, Lipton, Rosen & Katz. The Benchmark Company, LLC, serves as the financial advisor to SilverSun, and legal counsel is provided by Lucosky Brookman LLP.

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