Situation
Xemplar Education is a UK-based education Information and Communications Technology ("ICT") company. In 1998, Xemplar was the clear number two provider of ICT solutions to the UK schools market, and was the only ICT company in the UK that focused solely on the schools market. The Company was established in 1996 as a 50/50 joint venture between Acorn Computers Limited and Apple Computer Limited.
In 1998, Xemplar's two shareholders developed differing views as to what the future strategic direction of the company should be. As a result, in October 1998, Acorn retained ARC Associates to explore its alternatives for exiting the business.
Approach
ARC Associates prepared an information memorandum and supporting materials for discussions with potential acquirers. ARC conducted an extensive international call programme and managed discussions with potential strategic partners.
Acorn was prepared to either purchase Apple's 50% stake in Xemplar and sell down its resulting position to a strategic acquirer or to contemplate a direct sale to Apple.
The Transaction
In December 1998, Apple pre-empted discussions with potential third-party acquirers by making an offer for Acorn's stake. In January 1999, Acorn Computers Limited sold its 50% stake in Xemplar Education for £3.0 million to Apple Computer Inc. Limited.