MALVERN, PA -- USA Technologies Inc. said today that its board of directors has received a letter from S.A.V.E. Partners IV LLC, which suggests that USAT immediately commence a process to evaluate "potential strategic alternatives," including a sale.
The letter was also included by S.A.V.E., a Greenwich, CT-based shareholders group, as an exhibit to a publicly filed amendment to its Schedule 13D.
S.A.V.E., which stands for Shareholder Advocates for Value Enhancement, with its nominees and certain other shareholders, collectively owns 3,196,739 shares of USAT common stock, which is about 9.8% of USAT's outstanding shares.
In its letter to USAT shareholders, S.A.V.E. stated, "Specifically, we believe a sale of the company to a larger, better capitalized entity is the best course to maximize value for all shareholders." It noted that despite growth in USAT's connections, the company remains substantially undervalued.
USAT chairman and chief executive Stephen P. Herbert said, "I want to assure all of our shareholders, including S.A.V.E., that we fully recognize the market dynamics in which our company operates, and that our board of directors has appropriately explored, and continues to appropriately explore, any and all potential strategic alternatives in order to maximize shareholder value."