THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT ONE MINUTE AFTER 11:59 P.M., NEW YORK CITY TIME, ON NOVEMBER 17, 2026, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED. | ||
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT ONE MINUTE AFTER 11:59 P.M., NEW YORK CITY TIME, ON NOVEMBER 17, 2026, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED. | ||
• | If you hold your Shares directly as the holder of record, complete and sign the Letter of Transmittal (or, in the case of a book-entry transfer, deliver an Agent’s Message (as defined below) in lieu of the Letter of Transmittal) that accompanies this Offer to Purchase in accordance with the instructions set forth therein and mail or deliver the Letter of Transmittal with any required signature guarantees and all other required documents to the Depositary (as defined below in the “Summary Term Sheet”). These materials must be delivered to the Depositary prior to the Expiration Date (as defined below). |
• | If you hold your Shares through a broker, dealer, commercial bank, trust company or other nominee, request your broker, dealer, commercial bank, trust company or other nominee to tender your Shares through The Depository Trust Company’s (“DTC”) Automated Tender Offer Program (“ATOP”) prior to the Expiration Date. |
Securities Sought | Subject to certain conditions, including the satisfaction of the Minimum Condition (as described in Section 15 — “Conditions of the Offer”), any and all of the issued and outstanding shares of common stock, par value $0.005 per share (the “Shares”), of SoundThinking, Inc. (“SoundThinking” or the “Company”). | ||
Price Offered Per Share | Upon the terms and subject to the conditions set forth in this Offer to Purchase and in the related Letter of Transmittal: $8.00 per Share, net to the stockholder in cash, without interest (the “Closing Amount”), plus one non-transferable contingent value right per Share (each, a “CVR” and together with the Closing Amount, the “Offer Price”), which represents the contractual right to receive a contingent cash payment of up to $3.00 per CVR, net to the stockholder in cash, without interest and less any applicable tax withholding, upon the achievement of certain specified milestones in accordance with the terms and subject to the conditions of a contingent value rights agreement (the “CVR Agreement”) to be entered into by and among Parent, SoundThinking and a rights agent selected by Parent and reasonably acceptable to SoundThinking (the “Rights Agent”). | ||
Scheduled Expiration of Offer | One minute after 11:59 p.m., New York City time, on November 17, 2026, unless the Offer is otherwise extended or earlier terminated. | ||
Offeror | Transom Signal MergerSub, Inc. (“Merger Sub”), a Delaware corporation and wholly owned subsidiary of Transom Signal AcquireCo, LLC, a Delaware limited liability company (“Parent”). Merger Sub and Parent are affiliates of Transom Capital Group, LLC. | ||
SoundThinking Board Recommendation | The SoundThinking Board unanimously recommended that SoundThinking’s stockholders tender their Shares pursuant to the Offer. | ||
• | Merger Sub, a wholly owned subsidiary of Parent, which was formed solely for the purpose of facilitating the acquisition of SoundThinking by Parent, is offering to purchase, subject to certain conditions, including the satisfaction of the Minimum Condition, any and all of the issued and outstanding Shares in exchange for the Offer Price. |
• | Unless the context indicates otherwise, in this Offer to Purchase, we use the terms “us,” “we” and “our” to refer to Merger Sub together with, where appropriate, Parent. We use the term “Merger Sub” to refer to Transom Signal MergerSub, Inc. alone, the term “Parent” to refer to Transom Signal AcquireCo, LLC alone and the term “SoundThinking” to refer to SoundThinking, Inc. alone. |
• | Merger Sub is offering to purchase any and all of the issued and outstanding Shares on the terms and subject to the conditions set forth in this Offer to Purchase. In this Offer to Purchase, we use the term “Offer” to refer to this offer to purchase the Shares and the term “Shares” to refer to the issued and outstanding shares of common stock, par value $0.005 per share, of SoundThinking that are the subject of the Offer. |
• | We are making the Offer because we want to acquire control of, and ultimately the entire equity interest in, SoundThinking. Following the consummation of the Offer, we intend to complete the Merger (as defined below) as soon as practicable. Upon completion of the Merger, SoundThinking will become a wholly owned subsidiary of Parent. In addition, we will cause the Shares to be delisted from The Nasdaq Stock Market LLC (“Nasdaq”) and deregistered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), after completion of the Merger. |
• | The Offer is open to all holders and beneficial owners of the Shares. |
• | Merger Sub is offering to pay $8.00 per Share, net to the stockholder in cash, without interest, plus one CVR per Share, which represents the contractual right to receive a contingent cash payment of up to $3.00 per CVR, net to the stockholder in cash, without interest and less any applicable tax withholding, upon the achievement of certain specified milestones in accordance with the terms and subject to the conditions of the CVR Agreement. |
• | If you are the holder of record of your Shares and you directly tender your Shares to us in the Offer, you will not need to pay brokerage fees or similar expenses. If you own your Shares through a broker, dealer, commercial bank, trust company or other nominee, and your broker, dealer, commercial bank, trust company or other nominee tenders your Shares on your behalf, your broker, dealer, commercial bank, trust company or other nominee may charge you a fee for doing so. You should consult your broker, dealer, commercial bank, trust company or other nominee to determine whether any charges will apply. |
• | Yes. SoundThinking, Parent and Merger Sub have entered into an Agreement and Plan of Merger, dated September 28, 2026 (as it may be amended or otherwise modified from time to time, the “Merger Agreement”). The Merger Agreement contains, among other things, the terms and conditions of the Offer and the Merger. If the Minimum Condition and the other conditions to the Offer are satisfied or waived and we consummate the Offer, we intend to effect the Merger pursuant to Section 251(h) of the General Corporation Law of the State of Delaware, as amended (the “DGCL”), without a vote on the adoption of the Merger Agreement by SoundThinking stockholders. |
• | Each CVR represents a non-transferable contractual right to receive a contingent cash payment (the “Milestone Payment Amount”) of up to $3.00 per CVR, net to the stockholder in cash, without interest and less any applicable tax withholding, upon the achievement of certain specified Revenue (as defined below in Section 11 — “The Merger Agreement; Other Agreements — Contingent Value Rights Agreement”) milestones during SoundThinking’s fiscal year commencing on January 1, 2027 and ending on December 31, 2027 (the “Initial Milestone Period”) and, for certain other specified, limited revenues, a period of one hundred twenty (120) days thereafter (the “Continuation Period” and together with the Initial Milestone Period, the “Milestone Period”). |
• | The Milestone Payment Amount, if any, will be an amount equal to (i) $0.50 per CVR, payable if Revenue during the Milestone Period equals at least $73,500,000 (the “Minimum Milestone”), plus (ii) if the Minimum Milestone is achieved, $0.05 per CVR for each Additional Milestone achieved, where an “Additional Milestone” means |
• | Under the terms of the CVR Agreement, Parent and SoundThinking (and their respective successors and assigns) shall, and shall cause their respective subsidiaries to, use Commercially Diligent Efforts (as defined below in Section 11 — “The Merger Agreement; Other Agreements — Contingent Value Rights Agreement”) to achieve the Minimum Milestone and Additional Milestones. However, use of Commercially Diligent Efforts does not guarantee that Parent will achieve the Minimum Milestone and any Additional Milestones. Whether the Minimum Milestone or any Additional Milestone is achieved, and whether any Milestone Payment Amount becomes payable, will depend on numerous factors, some of which are within the control of Parent and SoundThinking (or their respective successors and assigns) and others of which are beyond their control. |
• | The right to the payment described above is solely a contractual right governed by the terms and subject to the conditions of the CVR Agreement, which will be entered into by and among Parent, SoundThinking and the Rights Agent. The Rights Agent will create and maintain a register of the holders of CVRs which will be updated as necessary by the Rights Agent. The CVRs will not be evidenced by a certificate or other instrument, will not have any voting or dividend rights and will not represent any equity or ownership interest in Parent, Merger Sub or SoundThinking or any of their affiliates or subsidiaries. The CVRs will not be registered with the SEC or listed for trading on any securities exchange. No interest will accrue or be payable in respect of any of the amounts that may be payable in respect of the CVRs. As a holder of a CVR, you will have no greater rights against Parent than those accorded to general unsecured creditors under applicable law. For more information on the CVRs, see Section 11 — “The Merger Agreement; Other Agreements — Contingent Value Rights Agreement.” |
• | Yes. It is possible that the Minimum Milestone will not be achieved, in which case you will receive only the Closing Amount for any Shares you tender in the Offer and no payment with respect to the CVRs you hold. It is not possible to predict whether a payment will become payable with respect to the CVRs, and there can be no assurance that the Minimum Milestone or any Additional Milestones will be achieved or that the payments described above will be made. For more information on the CVRs, see Section 11 — “The Merger Agreement; Other Agreements — Contingent Value Rights Agreement.” |
• | The CVRs will not be transferable except: |
• | upon death of a holder by will or intestacy; |
• | by instrument to an inter vivos or testamentary trust in which the CVR is to be passed to beneficiaries of the holder upon the death of the holder; |
• | pursuant to a court order (including in connection with bankruptcy or liquidation); |
• | by operation of law (including by consolidation or merger of the holder) or without consideration in connection with the dissolution, liquidation or termination of any corporation, limited liability company, partnership or other entity; |
• | in the case of a CVR held in book-entry or other similar nominee form, from a nominee to a beneficial owner and, if applicable, through an intermediary, or from such nominee to another nominee for the same beneficial owner; |
• | if the holder is a corporation, partnership or limited liability company, a distribution by the transferring corporation, partnership or limited liability company to its stockholders, partners or members, as applicable (provided that such distribution does not subject the CVRs to a requirement of registration under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act); or |
• | to Parent or a person nominated in writing by Parent in connection with the abandonment of such CVR by the applicable holder in accordance with Section 2.7 of the CVR Agreement. |
• | The exchange of Shares for the Offer Price pursuant to the Offer or the Merger will be a taxable transaction for U.S. federal income tax purposes. A U.S. Holder (as defined below) who sells Shares pursuant to the Offer or receives cash and CVRs in exchange for Shares pursuant to the Merger generally will recognize capital gain or loss for U.S. federal income tax purposes in an amount equal to the difference, if any, between (i) the amount of cash received (determined before the deduction of withholding taxes) and (ii) the U.S. Holder’s adjusted tax basis in the Shares sold pursuant to the Offer or converted pursuant to the Merger. The amount of gain or loss recognized, and the timing and character of such gain or loss, depends on the U.S. federal income tax treatment of the CVRs, with respect to which there is some uncertainty. The receipt of the Offer Price might be treated as either an “open transaction” or a “closed transaction” for U.S. federal income tax purposes. The installment method of reporting will not be available with respect to any gain attributable to the receipt of a CVR because the Shares are traded on an established securities market. See Section 5 — “Material U.S. Federal Income Tax Consequences” for a more detailed discussion of the tax treatment of the Offer and the Merger. |
• | If you are a Non-U.S. Holder (as defined below), you generally will not be subject to U.S. federal income tax with respect to the sale of Shares pursuant to the Offer or receipt of the Offer Price in exchange for Shares pursuant to the Merger unless you have certain connections to the United States. See Section 5 — “Material U.S. Federal Income Tax Consequences” for a more detailed discussion of the tax treatment of the Offer and the Merger. |
• | Yes. We estimate that we will need approximately $121 million in cash to (i) make or cause the making of all payments contemplated by the Merger Agreement required to be made by Parent or Merger Sub at the consummation of the Merger (including the payment of all amounts payable in connection with or as a result of the Offer and the Merger) and (ii) pay all fees and expenses required to be paid at or prior to the Closing (as defined in the Merger Agreement) by Parent or Merger Sub. Transom Capital Fund IV, L.P. (the “Equity Investor”) has provided Parent with an Equity Commitment Letter (as defined below), pursuant to which, among other things, the Equity Investor has agreed to commit to Parent up to an aggregate of approximately $121 million to purchase equity or debt securities of Parent, subject to the satisfaction of certain customary conditions set forth in the Equity Commitment Letter. Parent will contribute or otherwise advance to Merger Sub proceeds from the Equity Investor’s equity or debt investment, which we anticipate will be sufficient to (i) make or cause the making of all payments contemplated by the Merger Agreement required to be made by Parent or Merger Sub at the consummation of the Merger (including the payment of all amounts payable in connection with or as a result of the Offer and the Merger) and (ii) pay all fees and expenses required to be paid at or prior to the Closing by Parent or Merger Sub. See Section 9 — “Source and Amount of Funds.” |
• | The Offer is not conditioned upon Parent’s or Merger Sub’s obtaining third-party debt financing. However, SoundThinking has agreed in the Merger Agreement to use commercially reasonable efforts to cooperate in taking certain actions to assist Parent and Merger Sub in connection with obtaining third-party debt financing. |
• | We do not think Merger Sub’s financial condition is relevant to your decision to tender Shares in the Offer because: |
• | the Offer is being made for any and all issued and outstanding Shares solely for cash (including the right to receive any amounts payable with respect to the CVRs, which will be paid in cash upon the achievement of certain specified milestones in accordance with the terms and subject to the conditions of the CVR Agreement); |
• | Parent has received an equity commitment in respect of the funds, which will be sufficient to purchase all Shares validly tendered (and not validly withdrawn) in the Offer and, if we consummate the Offer and the Merger, all Shares converted into the right to receive an amount in cash equal to the Offer Price in the Merger; |
• | the Equity Investor is a private equity fund engaged in the purchase, sale and ownership of private equity investments and has no business operations other than investing; the Equity Investor’s commitment to fund the equity commitment as described above and in Section 9 — “Source and Amount of Funds” is material to your decision with respect to the Offer; |
• | if Merger Sub consummates the Offer, we will acquire all remaining Shares for the same Offer Price in the Merger; and |
• | the Offer and the Merger are not subject to any financing condition. |
• | Yes. The obligation of Merger Sub to accept for payment and pay for Shares validly tendered (and not validly withdrawn) pursuant to the Offer is subject to various conditions set forth in Section 15 — “Conditions of the Offer,” including the Minimum Condition. The “Minimum Condition” means that there will have been validly tendered in the Offer (and not validly withdrawn) prior to the Expiration Date (as defined below) that number of Shares that, considered together with all other Shares (if any) then owned by Merger Sub or any of its affiliates (as defined in Section 251(h)(6)(a) of the DGCL), would represent at least one Share more than 50% of the Shares outstanding at the Expiration Date. See Section 15 — “Conditions of the Offer.” |
• | No. Neither we nor SoundThinking is under any obligation to pursue or consummate the Merger if the Offer is not consummated as set forth in this Offer to Purchase. See Section 11 — “The Merger Agreement; Other Agreements — Merger Agreement.” |
• | You will have until the Expiration Date to tender your Shares in the Offer. The term “Expiration Date” means one minute after 11:59 p.m., New York City time, on November 17, 2026, unless the expiration of the Offer is extended to a subsequent time and date in accordance with the terms of the Merger Agreement, in which case the term “Expiration Date” means such subsequent time on such subsequent date. In addition, if, pursuant to the Merger Agreement, we decide to, or are required to, extend the Offer as described below, you will have an additional period of time to tender your Shares. We are not providing for guaranteed delivery procedures. Therefore, SoundThinking stockholders must allow sufficient time for the necessary tender procedures to be completed during normal business hours of DTC, which end earlier than the Expiration Date. Normal business hours of DTC are between 8:00 a.m. and 5:00 p.m., Eastern Time, Monday through Friday, other than holidays. SoundThinking stockholders must tender their Shares in accordance with the procedures set forth in this Offer to Purchase and the related Letter of Transmittal prior to the Expiration Date. Tenders received by the Depositary after the Expiration Date will be disregarded and of no effect. |
• | Yes. The Merger Agreement contains provisions that govern the circumstances under which Merger Sub is required or permitted to extend the Offer and under which Parent is required to cause Merger Sub to extend the Offer. Specifically, the Merger Agreement provides that: |
• | Merger Sub shall, and Parent shall cause Merger Sub to, extend the Offer and the Expiration Date from time to time, for any period required by any applicable law or any applicable interpretation, position, rule or requirement of the U.S. Securities and Exchange Commission (the “SEC”) or the staff thereof or Nasdaq; |
• | if, as of the then-scheduled Expiration Date, any of the Offer Conditions (other than the Minimum Condition and any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub shall, and Parent shall cause Merger Sub to, extend the Offer and the Expiration Date for additional periods of up to ten (10) business days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; |
• | if, as of the then-scheduled Expiration Date, each of the Offer Conditions (as defined below) (other than the Minimum Condition, and other than any other Offer Conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) has been satisfied or waived (to the extent such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived) and the Minimum Condition has not been satisfied, then Merger Sub may, and, at the request in writing of SoundThinking, Merger Sub shall, extend the Offer and the Expiration Date for additional periods of up to ten (10) business days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; provided, however, that in no event shall Merger Sub be required to extend the Offer and the Expiration Date pursuant to this third bullet for more than thirty (30) Business Days in the aggregate; and |
• | if, as of the then-scheduled Expiration Date, the Minimum Condition is satisfied but one or more of the other Offer Conditions (other than any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub may, and Parent may cause Merger Sub to, extend the Offer. |
• | No, the Merger Agreement does not provide for a “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 under the Exchange Act without the prior written consent of SoundThinking. |
• | If we extend the Offer, we intend to inform Equiniti Trust Company, LLC, the depositary and paying agent for the Offer (the “Depositary”), of any extension, and will issue a press release announcing the extension no later than 9:00 a.m., New York City time, on the business day after the previously scheduled Expiration Date. |
• | The obligation of Merger Sub to accept for payment and pay for Shares validly tendered (and not validly withdrawn) pursuant to the Offer is subject to the satisfaction of a number of conditions by the scheduled Expiration Date of the Offer, including, among other conditions: |
• | the Minimum Condition (as defined below in Section 15 — “Conditions of the Offer”); and |
• | the Termination Condition (as defined below in Section 15 — “Conditions of the Offer”). |
• | If you hold your Shares directly as the holder of record, complete and sign the Letter of Transmittal (or, in the case of a book-entry transfer, deliver an Agent’s Message in lieu of the Letter of Transmittal) that accompanies this Offer to Purchase in accordance with the instructions set forth therein and mail or deliver the Letter of Transmittal with any required signature guarantees and all other required documents to the Depositary. These materials must be delivered to the Depositary prior to the Expiration Date. |
• | If you hold your Shares through a broker, dealer, commercial bank, trust company or other nominee, request your broker, dealer, commercial bank, trust company or other nominee to tender your Shares through ATOP prior to the Expiration Date. |
• | We are not providing for guaranteed delivery procedures. Therefore, SoundThinking stockholders must allow sufficient time for the necessary tender procedures to be completed during normal business hours of DTC, which end earlier than the Expiration Date. Normal business hours of DTC are between 8:00 a.m. and 5:00 p.m., Eastern Time, Monday through Friday, other than holidays. SoundThinking stockholders must tender their Shares in accordance with the procedures set forth in this Offer to Purchase and the related Letter of Transmittal prior to the Expiration Date. Tenders received by the Depositary after the Expiration Date will be disregarded and of no effect. |
• | If the Offer Conditions are satisfied and we accept your validly tendered Shares for payment, payment will be made by deposit of the Closing Amount for such Shares accepted in the Offer with the Depositary, which will act as agent for tendering stockholders for the purpose of receiving payments from Merger Sub and transmitting payments, subject to any tax withholding required by applicable law, to tendering stockholders whose Shares have been accepted for payment. For the avoidance of doubt, Merger Sub is not required to deposit any funds related to any CVR with the Depositary; CVR-related funds will be deposited with the Rights Agent only when required pursuant to the terms of the CVR Agreement. |
• | You may withdraw your previously tendered Shares at any time until the Expiration Date. In addition, if we have not accepted your Shares for payment within 60 days of commencement of the Offer, you may withdraw them at any time on or after December 19, 2026, which is the first day after the 60-day period beginning on the date of commencement of the Offer, until we accept your Shares for payment. |
• | To validly withdraw previously tendered Shares, you must deliver a written notice of withdrawal with the required information to the Depositary prior to the Expiration Date. If you tendered Shares by giving instructions to a broker, dealer, commercial bank, trust company or other nominee, you must instruct the broker, dealer, commercial bank, trust company or other nominee to arrange for the withdrawal of your Shares in a timely manner prior to the Expiration Date. |
• | Yes. At a meeting held on September 28, 2026, the SoundThinking Board unanimously (i) determined that the Merger Agreement, the CVR Agreement and the Transactions contemplated by the Merger Agreement, including the Offer and the Merger, are advisable, fair to and in the best interests of the Company and the Company’s stockholders, (ii) approved the Merger Agreement, the CVR Agreement and the Transactions contemplated by the Merger Agreement, including the Offer and the Merger, (iii) resolved that the Merger shall be effected under Section 251(h) of the DGCL, and (iv) recommended that the stockholders of the Company tender their Shares to Merger Sub pursuant to the Offer, in each case upon the terms and subject to the conditions set forth in the Merger Agreement. |
• | Descriptions of the reasons for the SoundThinking Board’s recommendation and approval of the Offer are set forth in SoundThinking’s Solicitation/Recommendation Statement on Schedule 14D-9 (the “Schedule 14D-9”), which is being mailed to SoundThinking stockholders together with the Offer materials (including this Offer to Purchase and the related Letter of Transmittal). |
• | Stockholders should carefully read the information set forth in the Schedule 14D-9, including the information set forth in Item 4 thereof under the sub-headings “Background of the Offer and the Merger” and “Reasons for the Recommendation of the Board.” |
• | No. We expect to complete the Merger as soon as practicable following the consummation of the Offer. Once the Merger takes place, SoundThinking will become a wholly owned subsidiary of Parent. Following the Merger, we will cause the Shares to be delisted from Nasdaq and deregistered under the Exchange Act. |
• | No. Section 251(h) of the DGCL provides that, unless expressly required by its certificate of incorporation, no vote of stockholders will be necessary to authorize the merger of a constituent corporation which has a class or series of stock listed on a national securities exchange or held of record by more than 2,000 holders immediately prior to the execution of the applicable agreement of merger by such constituent corporation if, subject to certain statutory provisions: |
• | the agreement of merger expressly permits or requires that the merger will be effected by Section 251(h) of the DGCL and provides that such merger be effected as soon as practicable following the consummation of the tender offer; |
• | an acquiring corporation consummates a tender offer for all of the outstanding stock of such constituent corporation on the terms provided in such agreement of merger that, absent the provisions of Section 251(h) of the DGCL, would be entitled to vote on the adoption or rejection of the agreement of merger; provided however, that such tender offer may be conditioned on the tender of a minimum number or percentage of shares of the stock of such constituent corporation, or any class or series thereof, and such offer may exclude any excluded stock (as defined in the DGCL); |
• | immediately following the consummation of the tender offer, the stock that the acquiring corporation irrevocably accepts for purchase, together with the stock otherwise owned by the acquiring corporation or its affiliates, equals at least the percentage of shares of each class of stock of such constituent corporation that would otherwise be required to adopt the agreement of merger for such constituent corporation; |
• | the acquiring corporation merges with or into such constituent corporation pursuant to such agreement of merger; and |
• | each outstanding share (other than shares of excluded stock) of each class or series of stock of the constituent corporation that is the subject of and not irrevocably accepted for purchase in the offer is converted in such merger into, or into the right to receive, the same amount and type of consideration in the merger as was payable in the tender offer. |
• | If the conditions to the Offer and the Merger are satisfied or waived (to the extent waivable), we are required by the Merger Agreement to effect the Merger pursuant to Section 251(h) of the DGCL without a meeting of SoundThinking stockholders and without a vote or any further action by SoundThinking stockholders. |
• | If the Offer is consummated, subject to the satisfaction or waiver of certain conditions set forth in the Merger Agreement (See Section 11 — “The Merger Agreement; Other Agreements — Merger Agreement”), Merger Sub will merge with and into SoundThinking pursuant to Section 251(h) of the DGCL. At the effective time |
• | If the Merger is completed, SoundThinking stockholders who do not tender their Shares in the Offer (other than stockholders who properly exercise appraisal rights) will receive the same Offer Price that they would have received had they tendered their Shares in the Offer. Therefore, if the Offer is consummated and the Merger is completed, the only differences to you between tendering your Shares and not tendering your Shares in the Offer are that (i) you may be paid earlier if you tender your Shares in the Offer and (ii) appraisal rights will not be available to you if you tender Shares in the Offer, but will be available to you in the Merger if you do not tender Shares in the Offer and you comply in all respects with Section 262 of the DGCL. See Section 17 — “Appraisal Rights.” |
• | However, in the unlikely event that the Offer is consummated but the Merger is not completed, the number of SoundThinking stockholders and the number of Shares that are still in the hands of the public may be so small that there will no longer be an active public trading market (or, possibly, there may not be any public trading market) for the Shares. Also, in such event, it is possible that the Shares will be delisted from Nasdaq and SoundThinking will no longer be required to make filings with the SEC under the Exchange Act. |
• | At the Effective Time, by virtue of the Merger, each option to purchase Shares (each, a “Company Stock Option”) that is vested and outstanding immediately prior to the Effective Time (including any Company Stock Option that becomes vested upon consummation of the Merger) and that has a per share exercise price less than the Closing Amount will be canceled and converted into the right to receive (A) an amount in cash, without interest and subject to applicable withholding taxes, equal to the product of (i) the total number of Shares covered by such vested Company Stock Option immediately prior to the Effective Time, multiplied by (ii) the excess of the Closing Amount over the per share exercise price of such Company Stock Option, and (B) one CVR for each Share subject to such vested Company Stock Option. |
• | Each vested Company Stock Option with a per share exercise price equal to or greater than the Closing Amount but less than the sum of the Closing Amount and the maximum aggregate CVR payment of $3.00 per CVR will be canceled and converted into the right to receive an amount in cash, without interest and subject to applicable withholding taxes, equal to the product of (i) the total number of Shares covered by such vested Company Stock Option immediately prior to the Effective Time, multiplied by (ii) the cash payment a holder of one CVR would receive, as and when such payment is made to the holders of CVRs; provided that each such Company Stock Option shall only receive the excess, if any, of the sum of (A) the Closing Amount plus (B) such CVR payment minus the applicable per share exercise price of such Company Stock Option. |
• | Each unvested Company Stock Option with a per share exercise price less than the Closing Amount will be canceled and converted into the right to receive (A) a restricted cash award with a cash value equal to (i) the total number of Shares subject to such Company Stock Option immediately prior to the Effective Time, multiplied by (ii) the excess of the Closing Amount over the per share exercise price of such Company Stock Option and (B) one CVR for each Share subject to such Company Stock Option immediately prior to the Effective Time. |
• | Each unvested Company Stock Option with a per share exercise price that is equal to or greater than the Closing Amount and less than the sum of the Closing Amount and the maximum aggregate CVR payment of $3.00 per CVR will be canceled and converted into the right to receive an amount in cash, without interest and subject to applicable withholding taxes, equal to the product of (i) the total number of Shares subject to such Company Stock Option immediately prior to the Effective Time, multiplied by (ii) the cash payment a holder |
• | Each vested or unvested Company Stock Option with a per share exercise price equal to or greater than the sum of the Closing Amount and $3.00 (the maximum amount payable per CVR) will be canceled for no consideration. |
• | Each restricted stock unit covering Shares subject to time-based vesting conditions (each, a “Company RSU”) that is vested and outstanding immediately prior to the Effective Time (including any Company RSU that vests upon consummation of the Merger) will be canceled and converted into the right to receive (A) an amount in cash, without interest and subject to applicable withholding taxes, equal to the product of the total number of Shares covered by such Company RSU, multiplied by the Closing Amount, and (B) one CVR for each Share covered by such Company RSU. |
• | Each outstanding unvested Company RSU will be canceled and converted into the right to receive (A) a restricted cash award (“RSU Restricted Cash Award”) with respect to a cash value equal to (i) the total number of Shares underlying such unvested Company RSU, multiplied by (ii) the Closing Amount and (B) one CVR for each Share subject to such unvested Company RSU immediately prior to the Effective Time. Both the RSU Restricted Cash Award and any payments pursuant to the corresponding CVR shall vest and become payable subject to the same vesting schedule and service-based forfeiture conditions that applied to the corresponding Company RSU immediately prior to the Effective Time and shall be paid in cash (without interest and less any applicable tax withholding) as soon as practicable following (and in no event later than thirty (30) days after) each applicable vesting event or, in respect of the CVR, if later, the date on which such payments become payable pursuant to the CVR Agreement. |
• | Each performance-based restricted stock unit (each, a “Company PRSU”) that is outstanding as of the Effective Time shall be assumed and converted into (A) a restricted cash award (a “PRSU Restricted Cash Award”) with a cash value equal to the product of the total number of Shares underlying such Company PRSU, multiplied by the Closing Amount and (B) one CVR for each Company PRSU. Both the PRSU Restricted Cash Award and any payments in respect of the corresponding CVR shall vest and become payable subject to the same vesting schedule and performance- and service-based forfeiture conditions that applied to the corresponding Company PRSU immediately prior to the Effective Time, and shall be paid in cash (without interest and less applicable tax withholding) as soon as practicable following (and in no event later than thirty (30) days after) each applicable vesting event or, in respect of the CVR, if later, the date on which such payments become payable pursuant to the CVR Agreement. |
• | As of the Effective Time, by virtue of the Merger, the Company Equity Plans (as defined below) will be terminated and no further Shares, Company Stock Options, Company RSUs, Company PRSUs or other equity or equity-related interests in SoundThinking or other rights with respect to Shares or otherwise shall be granted thereunder. Following the Effective Time, no Company Stock Option, Company RSU, Company PRSU, equity or equity-related interest or other right under any Company Equity Plan or otherwise that was outstanding immediately prior to the Effective Time shall remain outstanding, and each former holder of any such Company Stock Option, Company RSU, Company PRSU, equity or equity-related interest or other right shall cease to have any rights with respect thereto, except the right to receive the consideration set forth above. See Section 11 — “The Merger Agreement; Other Agreements — Merger Agreement.” |
• | On September 28, 2026, the last full day of trading before the public announcement of the execution of the Merger Agreement, the reported closing price of the Shares on Nasdaq was $5.47 per Share. On October 19, 2026, the last full day of trading before commencement of the Offer, the reported closing price of the Shares on Nasdaq was $8.28 per Share. We encourage you to obtain a recent market quotation for the Shares before deciding whether to tender your Shares. |
• | Yes. On September 28, 2026, in connection with the execution and delivery of the Merger Agreement, Veradace Partners L.P. (the “Supporting Stockholder”), solely in its capacity as stockholder of SoundThinking, entered into the tender and support agreement (the “Tender and Support Agreement”), with Parent and Merger Sub, pursuant to which the Supporting Stockholder agreed, among other things, (i) to validly tender all of the Shares held by the Supporting Stockholder into the Offer, subject to certain exceptions (including the valid termination of the Merger Agreement), (ii) to vote against other proposals to acquire SoundThinking, and (iii) to certain other restrictions on its ability to take actions with respect to SoundThinking and its Shares. |
• | The Tender and Support Agreement terminates automatically upon the earliest of (i) the valid termination of the Merger Agreement in accordance with its terms, (ii) the Effective Time, (iii) termination of the Tender and Support Agreement by the mutual written consent of the parties thereto, or (iv) the date on which any amendment or change to the Merger Agreement or the Offer is effected without the Supporting Stockholder’s consent that (a) decreases the amount, or changes the form, of consideration in an adverse manner to the Supporting Stockholder, individually, or the stockholders of SoundThinking, generally, or (b) imposes any material restrictions or additional conditions on the consummation of the Merger or the other Transactions or the payment of the Offer Price to stockholders pursuant to the Merger Agreement. The Supporting Stockholder beneficially owned approximately 15.8% of the outstanding Shares as of September 24, 2026. |
• | Further, on September 28, 2026, in connection with the execution and delivery of the Merger Agreement, Gary M. Lauder, The Gary M. Lauder Revocable Trust, Lauder Partners LLC, and Gary M. Lauder 2015 Trust (each, a “Lauder Supporting Stockholder”, and collectively, the “Lauder Supporting Stockholders”), solely in their respective capacities as stockholders of SoundThinking, entered into the tender, support and reinvestment agreement (the “Tender, Support and Reinvestment Agreement”) with Parent, Merger Sub, Transom Signal TopCo, LP and Transom Signal HoldCo, Inc., pursuant to which the Lauder Supporting Stockholders agreed, among other things, (i) to validly tender all of the Shares held by the Lauder Supporting Stockholders into the Offer, subject to certain exceptions (including the valid termination of the Merger Agreement), (ii) to vote against other proposals to acquire SoundThinking, and (iii) to certain other restrictions on their ability to take actions with respect to SoundThinking and its Shares. |
• | The Tender, Support and Reinvestment Agreement terminates automatically with respect to each Lauder Supporting Stockholder upon the earliest of (i) the valid termination of the Merger Agreement in accordance with its terms, (ii) the Effective Time, subject to the survival of the reinvestment and certain other provisions, (iii) termination of the Tender, Support and Reinvestment Agreement by the mutual written consent of the parties thereto, or (iv) the date on which any amendment or change to the Merger Agreement or the Offer is effected without such Lauder Supporting Stockholder’s consent that decreases the amount, or changes the form, of consideration in an adverse manner to such Lauder Supporting Stockholder, individually, or the stockholders of SoundThinking, generally, pursuant to the Merger Agreement. The Lauder Supporting Stockholders beneficially owned approximately 17.0% of the outstanding Shares as of September 24, 2026. |
• | Subject to the terms and conditions of the Tender, Support and Reinvestment Agreement, following the Effective Time, the participating Lauder Supporting Stockholders will purchase equity interests in Transom Signal HoldCo, Inc. in exchange for an aggregate amount of cash calculated to result in the participating stockholders holding, in the aggregate, an agreed percentage of equity interests of Transom Signal TopCo, LP, and immediately thereafter contribute such equity interests to Transom Signal TopCo, LP in exchange for equity interests of equivalent value in Transom Signal TopCo, LP. |
• | If the Offer is successful and the Merger is consummated, SoundThinking stockholders who continuously held Shares from the date of the demand for appraisal through the effective date of the Merger who: (i) did not tender their Shares in the Offer; (ii) otherwise comply with the applicable requirements and procedures of Section 262 of the DGCL, including providing documentary evidence of such stockholder’s beneficial ownership of such Shares; and (iii) do not thereafter withdraw their demand for appraisal of such Shares or otherwise lose their appraisal rights, in each case in accordance with Section 262 of the DGCL, will be |
• | More information regarding Section 262 of the DGCL, including how to access it without subscription or cost, is set forth in SoundThinking’s Solicitation/Recommendation Statement on Schedule 14D-9, which is being mailed to SoundThinking stockholders together with the Offer materials (including this Offer to Purchase and the related Letter of Transmittal). |
Terms of the Offer |
• | Merger Sub shall, and Parent shall cause Merger Sub to, extend the Offer and the Expiration Date from time to time, for any period required by any applicable law or any applicable interpretation, position, rule or requirement of the SEC or the staff thereof or Nasdaq; |
• | if, as of the then-scheduled Expiration Date, any of the Offer Conditions (other than the Minimum Condition and any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub shall, and Parent shall cause Merger Sub to, extend the Offer and the Expiration Date for additional periods of up to ten (10) business days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; |
• | if, as of the then-scheduled Expiration Date, each of the Offer Conditions (other than the Minimum Condition, and other than any other Offer Conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) has been satisfied or waived (to the extent such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived) and the Minimum Condition has not been satisfied, then Merger Sub may, and, at the request in writing of SoundThinking, Merger Sub shall, extend the Offer and the Expiration Date for additional periods of up to ten (10) business days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; provided, however, that in no event shall Merger Sub be required to extend the Offer and the Expiration Date pursuant to this third bullet for more than thirty (30) Business Days in the aggregate; and |
• | if, as of the then-scheduled Expiration Date, the Minimum Condition is satisfied but one or more of the other Offer Conditions (other than any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub may, and Parent may cause Merger Sub to, extend the Offer. |
• | decrease the Closing Amount or decrease the Milestone Payment Amount (other than an adjustment made pursuant to Section 1.1(g) of the Merger Agreement); |
• | change the form of consideration payable in the Offer (provided that nothing in the Merger Agreement shall limit the ability of Parent and Merger Sub to increase the cash consideration payable in the Offer); |
• | decrease the maximum number of Shares sought to be purchased in the Offer; |
• | impose additional conditions to the Offer other than the Offer Conditions; |
• | amend, modify or waive the Minimum Condition; |
• | amend, modify or supplement any of the Offer Conditions in a manner that adversely affects any holder of Shares in its capacity as such; |
• | withdraw or terminate the Offer or extend or otherwise change the Expiration Date, in each case, except as otherwise required or expressly permitted by the Merger Agreement; or |
• | provide any “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 promulgated under the Exchange Act. |
Acceptance for Payment and Payment for Shares |
Procedures for Accepting the Offer and Tendering Shares |
Withdrawal Rights |
Material U.S. Federal Income Tax Consequences |
• | the gain, if any, on the Shares is effectively connected with a U.S. trade or business of the Non-U.S. Holder (and, if an applicable treaty so provides, is also attributable to a permanent establishment maintained by such Non-U.S. Holder in the United States); or |
• | the Non-U.S. Holder is a nonresident alien individual who is present in the United States for 183 days or more in the taxable year of the Effective Time and certain other conditions are met. |
Price Range of Shares; Dividends on the Shares |
High | Low | |||||
2026 | ||||||
Fourth Quarter (through October 19, 2026) | $8.57 | $8.21 | ||||
Third Quarter | $10.03 | $5.42 | ||||
Second Quarter | $9.12 | $6.13 | ||||
First Quarter | $9.28 | $6.04 | ||||
2025 | ||||||
Fourth Quarter | $12.25 | $5.78 | ||||
Third Quarter | $14.26 | $10.81 | ||||
Second Quarter | $17.43 | $12.60 | ||||
First Quarter | $19.43 | $12.24 | ||||
2024 | ||||||
Fourth Quarter | $14.70 | $9.33 | ||||
Third Quarter | $16.20 | $11.20 | ||||
Second Quarter | $16.92 | $11.00 | ||||
First Quarter | $25.28 | $14.64 | ||||
Certain Information Concerning SoundThinking |
Certain Information Concerning Parent, Merger Sub and Certain Related Parties |
Source and Amount of Funds |
(i) | the consummation of the Offer and the Merger and the satisfaction of the Required Amounts (as defined in the Merger Agreement), in each case in accordance with the terms of the Merger Agreement; |
(ii) | the date that is ninety (90) days after any valid termination of the Merger Agreement pursuant to Section 8.1 thereof, if SoundThinking has not commenced a legal action against Parent or the Equity Investor under, and in accordance with, the Merger Agreement or the Limited Guarantee for payment of Guaranteed Obligations on or prior to such date; and |
(iii) | payment of the Guaranteed Obligations by or on behalf of the Equity Investor and/or Parent in cash in an amount up to the Cap (or such lesser amount set forth in any final, non-appealable order or by written agreement of the Equity Investor and SoundThinking). |
Background of the Offer; Past Contacts or Negotiations with SoundThinking |
The Merger Agreement; Other Agreements |
• | decrease the Closing Amount (as defined below) or decrease the Milestone Payment Amount (as defined below) (other than an adjustment made pursuant to Section 1.1(g) of the Merger Agreement); |
• | change the form of consideration payable in the Offer (provided that nothing in the Merger Agreement shall limit the ability of Parent and Merger Sub to increase the cash consideration payable in the Offer); |
• | decrease the maximum number of Shares sought to be purchased in the Offer; |
• | impose additional conditions to the Offer other than the Offer Conditions; |
• | amend, modify or waive the Minimum Condition; |
• | amend, modify or supplement any of the Offer Conditions in a manner that adversely affects any holder of Shares in its capacity as such; |
• | withdraw or terminate the Offer or extend or otherwise change the Expiration Date, in each case, except as otherwise required or expressly permitted by the Merger Agreement; or |
• | provide any “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 promulgated under the Exchange Act. |
• | Merger Sub shall, and Parent shall cause Merger Sub to, extend the Offer and the Expiration Date from time to time, for any period required by any applicable law or any applicable interpretation, position, rule or requirement of the SEC or the staff thereof or Nasdaq; |
• | if, as of the then-scheduled Expiration Date, any of the Offer Conditions (other than the Minimum Condition and any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub shall, and Parent shall cause Merger Sub to, extend the Offer and the Expiration Date for additional periods of up to ten (10) business days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; |
• | if, as of the then-scheduled Expiration Date, each of the Offer Conditions (other than the Minimum Condition, and other than any other Offer Conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) has been satisfied or waived (to the extent such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived) and the Minimum Condition has not been satisfied, then Merger Sub may, and, at the request in writing of SoundThinking, Merger Sub shall, extend the Offer and the Expiration Date for additional periods of up to ten (10) business days (calculated as set forth in Rule 14d-1(g)(3) under the Exchange Act) per extension; provided, however, that in no event shall Merger Sub be required to extend the Offer and the Expiration Date pursuant to this third bullet for more than thirty (30) Business Days in the aggregate; and |
• | if, as of the then-scheduled Expiration Date, the Minimum Condition is satisfied but one or more of the other Offer Conditions (other than any such conditions that by their nature are to be satisfied at the Expiration Date (provided, that such other Offer Conditions would be capable of being satisfied or validly waived were the Expiration Date to occur at such time)) is not satisfied (unless such other Offer Condition is waivable by Merger Sub or Parent and has been validly waived), Merger Sub may, and Parent may cause Merger Sub to, extend the Offer. |
• | corporate matters, such as organization, organizational documents, standing, qualification, power and authority; |
• | capital structure; |
• | subsidiaries and equity interests; |
• | authority, execution and enforceability relative to the Merger Agreement; |
• | no conflicts, required consents, and governmental authorizations; |
• | SEC filings and undisclosed liabilities; |
• | disclosure controls and internal controls over financial reporting; |
• | accuracy of information supplied for purposes of the Offer Documents; |
• | the absence of specified changes or events; |
• | taxes; |
• | labor relations; |
• | employees and employee benefit plans; |
• | real property; |
• | contracts; |
• | litigation; |
• | compliance with laws, including anti-corruption and anti-bribery laws; |
• | environmental matters; |
• | permits; |
• | intellectual property; |
• | privacy and data security; |
• | brokers and other advisors; |
• | material customers and suppliers; |
• | government contracts and regulatory matters; |
• | anti-takeover provisions and statutes; |
• | the opinion of its financial advisor; |
• | no stockholder vote required; and |
• | related party transactions. |
• | any general business or economic conditions in or affecting the United States, or any other country or region in the world, or any changes therein; |
• | acts of war, civil unrest, national or international calamity, sabotage or terrorism (including cyberterrorism), in each case in the United States or any other jurisdiction, country or region in the world; |
• | changes in the economic, legislative, regulatory or political conditions (including government shutdowns and tariffs) or conditions in any financial, banking, credit, capital or securities markets generally, or any Effects otherwise relating to any changes in interest rates, inflation rates, fluctuations in the value of any currency or tariffs, in each case in the United States or any other country or region in the world; |
• | changes after the date of the Merger Agreement in any applicable laws or accounting requirements or principles required by GAAP; |
• | any Effect that is generally affecting the industries or markets in which SoundThinking or any of its subsidiaries operates; |
• | the execution or public announcement of the Merger Agreement or the pendency or consummation of the transactions contemplated by the Merger Agreement, including (A) any action taken or not taken by SoundThinking or any of its subsidiaries at the express written request of Parent, (B) the initiation or settlement of any legal actions threatened or commenced by or involving any SoundThinking stockholders arising out of or related to the Merger Agreement or the transactions contemplated thereby, (C) any Effect that arises out of or relates to the identity of, or any facts or circumstances relating to, Parent or any of its affiliates, or (D) the impact of any of the foregoing on the relationships, contractual or otherwise, of SoundThinking or any of its subsidiaries with employees, financing sources, customers, suppliers, partners, Governmental Entities or other business or regulatory relationships (provided that this clause (D) will not apply with respect to any representation or warranty the purpose of which is to address the consequences resulting from the execution and delivery of the Merger Agreement or the consummation of the transactions contemplated by the Merger Agreement (including the Offer and the Merger) or the performance of obligations under the Merger Agreement); |
• | any failure by SoundThinking to meet, or changes to, any internal or published budgets, projections, forecasts, estimates, guidance, milestones, operating statistics or predictions for any period (it being understood that the underlying facts giving rise or contributing to such failure or change may be taken into account in determining whether a Company Material Adverse Effect has occurred); |
• | any change in the market price, credit rating or trading volume of SoundThinking’s stock or other securities, or any change affecting the ratings or the ratings outlook for SoundThinking (it being understood that the underlying facts giving rise or contributing to such change may be taken into account, and will not be excluded, in determining whether a Company Material Adverse Effect has occurred); and |
• | any outbreaks of diseases or public health events, pandemics, epidemics, acts of God or other natural disasters or any escalation of the foregoing. |
• | corporate matters, such as organization, organizational documents, standing, qualification, power and authority; |
• | authority, execution and enforceability relative to the Merger Agreement; |
• | no conflicts, required consents, and governmental authorizations; |
• | the Limited Guarantee; |
• | the absence of prior business or operations of Merger Sub; |
• | accuracy of information supplied for purposes of the Offer Documents and the Schedule 14D-9; |
• | brokers; |
• | foreign person status for purposes of the Committee on Foreign Investment in the United States; |
• | ownership of securities of SoundThinking; |
• | solvency; |
• | stockholder and management arrangements; |
• | no stockholder vote required; |
• | non-competition; and |
• | availability of funds to consummate the Offer and the Merger. |
• | amend any of the Company Organizational Documents or any of the Subsidiary Organizational Documents; |
• | (A) adjust, split, combine or reclassify its capital stock or any securities convertible or exchangeable into or exercisable for any shares of its capital stock; (B) issue, authorize, grant, sell, transfer, pledge or otherwise dispose of or encumber any shares of its capital stock or any securities convertible or exchangeable into or exercisable for any shares of its capital stock, including any options, warrants, stock appreciation rights, |
• | make, declare, set aside or pay any dividend or other distribution (whether payable in cash, stock, property or a combination thereof) with respect to, or, directly or indirectly, redeem, purchase or otherwise acquire, any shares of its capital stock or any securities convertible or exchangeable into or exercisable for any shares of its capital stock, except for dividends or other distributions paid by a wholly owned subsidiary of SoundThinking to SoundThinking or another wholly owned subsidiary of SoundThinking; |
• | (A) increase or accelerate or commit to accelerate the funding, payment, vesting of the compensation or benefit provided to any current or former employee, director, officer, manager, independent contractor, consultant or other individual service provider of SoundThinking or any of its subsidiaries (or any of their respective dependents or beneficiaries), including under any Company Benefit Plan or any other benefit or compensation plan, agreement, contract program, policy or arrangement, (B) grant, promise or announce any cash or equity or equity-based incentive awards, bonus, retention, change in control, transaction, severance or similar compensation or any increase in the salaries, bonuses or other compensation and benefits payable by SoundThinking or any of its subsidiaries to any current or former employee, director, officer, manager, independent contractor, consultant or other individual service provider of SoundThinking or any of its subsidiaries, (C) hire, promote or engage, or otherwise enter into any employment arrangement or independent contractor agreement with any current or former employee, director, officer, manager, independent contractor, consultant or other individual service provider of SoundThinking or any of its subsidiaries with a title of Vice President or above or with annual compensation of $300,000 or more (other than hiring, promoting or engaging such individuals as is reasonably necessary in connection with a replacement or backfill of a previously existing position, so long as the new employee’s compensation and other terms and conditions of employment are substantially comparable to those of the employee being replaced and SoundThinking has provided notice of such change to Parent), or (D) terminate (other than for cause) the employment of, furlough or temporarily layoff any officer, director, employee or independent contractor with a title of Vice President or above or with annual compensation of $300,000 or more; |
• | (A) establish, adopt, amend or terminate any Company Benefit Plan or any other benefit or compensation plan, policy, program, contract, agreement or arrangement that would be a Company Benefit Plan if in effect on September 28, 2026, (B) accept the transfer of sponsorship of, or any liabilities relating to, any Company Benefit Plan, or (C) withdraw from, incur any withdrawal liability with respect to or commence an obligation of SoundThinking or any of its subsidiaries to contribute to, any “multiemployer plan” (as defined in Section 3(37) of ERISA); |
• | merge or consolidate SoundThinking or any of its subsidiaries with any Person or adopt a plan of complete or partial liquidation or resolutions providing for a complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization of SoundThinking or any of its subsidiaries; |
• | directly or indirectly sell, lease, sublease, exclusively license, transfer, pledge or otherwise dispose of or encumber (whether by merger, consolidation, other business combination, sale or otherwise) all or any material portion of the Company Assets (other than (v) licenses to Company products and services granted on a non-exclusive basis, (w) as required to comply with a Company Contract in effect as of September 28, 2026, (x) the sale of inventory or the disposition of used or excess equipment, (y) pledges or encumbrances pursuant to financing transactions permitted pursuant to Section 6.1(b)(x) of the Merger Agreement or (z) otherwise in the ordinary course of business consistent with past practices); |
• | directly or indirectly sell, lease, exclusively license, sublicense, transfer, pledge, encumber, abandon, permit to lapse, dedicate to the public, fail to maintain or otherwise dispose of any material Company Owned IP, other than non-exclusive licenses granted in the ordinary course of business consistent with past practices; |
• | except in respect of any merger, consolidation, business combination or other purchase among SoundThinking and its subsidiaries or among SoundThinking’s subsidiaries, directly or indirectly acquire or purchase (whether by merger, consolidation, other business combination, purchase, subscription or otherwise) any material assets or properties, including capital stock or other equity securities of any Person (other than the purchase of raw materials, inventory, supplies and equipment or license of software); |
• | (A) incur any indebtedness (including, without limitation, indebtedness for borrowed money, or indebtedness evidenced by notes, bonds, debentures, or similar contractual obligations) or issue any debt securities, (B) assume, guarantee or endorse, or otherwise as an accommodation become liable or responsible for (whether directly, contingently or otherwise), any such indebtedness or debt securities, or (C) redeem, repurchase, cancel or otherwise acquire any such indebtedness or debt securities (directly, contingently or otherwise), except in each case (x) for borrowings under SoundThinking’s revolving credit facilities in existence (and not to exceed that available amount of commitments thereunder) as of September 28, 2026, and (y) letters of credit issued for the benefit of Company vendors, in each case of the foregoing clauses (x) and (y), in the ordinary course of business and consistent with past practices; |
• | make any loans, advances or capital contributions to, or investments in, any other Person, except for (A) short-term advances to directors, officers and other employees for travel and other business-related expenses and (B) loans, advances or capital contributions to, or investments in, SoundThinking or any of its subsidiaries, in each case in the ordinary course of business (including in the case of clause (B), in compliance in all material respects with SoundThinking’s and its subsidiaries’ policies related thereto); |
• | terminate or cancel, or agree to any material amendment to or waiver under, any Company Contract, or enter into or amend any Contract that, if existing on September 28, 2026, would be a Company Contract (in each case, including renewals or extensions of any existing Material Contracts and amendments that accompany such renewals or extension), in each case, other than in the ordinary course of business consistent with past practices; |
• | purchase or acquire any interest in real property; |
• | except as provided for in SoundThinking’s budget for such fiscal year as provided to Parent, make or authorize any capital expenditures in excess of $500,000, individually or in the aggregate; |
• | adopt or implement any change in its accounting policies or procedures, other than as required by GAAP or applicable Law; |
• | waive, release, assign, settle or compromise, or offer to waive, release, assign, settle or compromise, any material rights, claims, litigation or proceedings, other than the settlement of any claims, litigations or proceedings that is: (A) reflected or reserved against in the Audited Company Balance Sheet; (B) otherwise for solely monetary payments, net of insurance recovery, of no more than $350,000 in the aggregate and that (x) does not involve any admission of wrongdoing or (y) does not impose any material restriction on the business or activities of SoundThinking or any current or future subsidiaries of SoundThinking or Parent or its current or future subsidiaries; |
• | implement or announce any employee layoffs, plant closings, reductions in force, furloughs, temporary layoffs, salary or wage reductions, work schedule changes or other such actions that would trigger notice requirements under the WARN Act; |
• | waive or release any noncompetition, non-solicitation, nondisclosure, noninterference, non-disparagement or similar obligations of any current or former officer, employee or consultant of SoundThinking or any of its subsidiaries; |
• | negotiate, enter into, modify, extend, amend, or terminate any Labor Agreement or recognize or certify any labor union, works council, labor organization, other employee representative or group of employees as the bargaining representative for any employees of SoundThinking or any of its subsidiaries; |
• | enter into any Contract that would expressly limit or restrict SoundThinking or any of its subsidiaries, or that would after the Effective Time expressly limit or restrict Parent or any of its subsidiaries, from engaging or competing in any line of business or in any geographic area, in each case, in any material respect; |
• | make (other than in the ordinary course of business consistent with past practices), change or revoke any material Tax election, settle or compromise any material federal, state, local or foreign Tax liability, enter into any “closing agreement” or other agreement relating to material Taxes with any Governmental Entity, apply for any material Tax ruling, adopt or change any material Tax accounting period or method, amend any previously filed material Tax Return, enter into any Tax allocation agreement, Tax-sharing agreement, pre-filing or advance pricing agreement, or Tax indemnity agreement (in each case, other than agreements the primary purpose of which does not relate to Taxes), or agree to any extension or waiver regarding the application of the statute of limitations with respect to any Taxes or Tax Returns (other than pursuant to an extension of time to file a Tax Return); |
• | fail to maintain insurance in such amounts and against such risks and losses as is maintained by SoundThinking and its subsidiaries as of September 28, 2026; or |
• | authorize, propose or commit to do any of the foregoing. |
• | solicit, initiate, knowingly facilitate, encourage or assist, directly or indirectly, any inquiries, offers or proposals that constitute, or reasonably would be expected to lead to, any Takeover Proposal; |
• | initiate, enter into, participate or engage in discussions or negotiations with any Person with respect to a Takeover Proposal; |
• | furnish or otherwise disclose any information relating to SoundThinking or any of its subsidiaries, in each case, to any Person that has made or is reasonably known to be considering making any inquiry, offer or proposal that constitutes, or reasonably would be expected to lead to, any Takeover Proposal; |
• | accept, approve, publicly endorse, publicly recommend or enter into any letter of intent, term sheet, memorandum of understanding, merger agreement, acquisition agreement, stock purchase agreement, asset purchase agreement, option agreement, joint venture agreement, partnership agreement or other agreement, arrangement or understanding, whether binding or non-binding, written or oral, constituting a Takeover Proposal (other than a confidentiality agreement or advisory agreement) (each, an “Alternative Acquisition Agreement”); or |
• | resolve, agree, or propose, or publicly announce an intention to, do any of the foregoing. |
• | if the Offer Acceptance Time shall not have occurred on or before the Outside Date; provided that the right to terminate the Merger Agreement pursuant to Section 8.2(a) of the Merger Agreement shall not be available to any Party whose failure to fulfill any of its obligations has been a primary cause of, or primarily resulted in, the failure of the Offer Acceptance Time to occur on or before the Outside Date; |
• | if the condition set forth in Section 7.1(b) (No Legal Restraints) of the Merger Agreement is not satisfied and a Legal Restraint giving rise to such nonsatisfaction has become final and non-appealable; provided that the right to terminate the Merger Agreement pursuant to Section 8.2(b) of the Merger Agreement shall not be available to any Party if the issuance of such final, non-appealable Legal Restraint was primarily due to or primarily caused by the failure of such Party to perform any of its covenants or obligations under the Merger Agreement; or |
• | if, at any time prior to the Offer Acceptance Time, the Offer shall have expired in accordance with its terms (as extended in accordance with the terms of the Merger Agreement) and the Offer Acceptance Time shall not have occurred solely as a result of the failure to satisfy the Minimum Condition; provided that the right to terminate the Merger Agreement pursuant to Section 8.2(c) of the Merger Agreement shall not be available to any Party that has breached in any material respect its obligations under the Merger Agreement in any manner that shall have been the primary cause of the occurrence of the events described in Section 8.2(c) of the Merger Agreement. |
• | if, prior to the Offer Acceptance Time, (i) the Company Board shall have effected a Company Board Recommendation Change; or (ii) (A) SoundThinking shall have willfully breached its obligations under the non-solicitation provision of the Merger Agreement, and (B) as of such date of termination, the Minimum Condition has not been satisfied; or |
• | if SoundThinking shall have breached or failed to perform any of its covenants or other agreements, or if any of the representations or warranties of SoundThinking in the Merger Agreement is inaccurate, which breach, failure to perform or inaccuracy would result in a failure of the Offer Conditions set forth in clause (b) or |
• | if (i) Merger Sub shall have failed to commence (within the meaning of Rule 14d-2 under the Exchange Act) the Offer within the period specified in the Merger Agreement or (ii) Merger Sub shall, when required to do so in accordance with the terms of the Merger Agreement, have failed to accept and pay for all the Shares validly tendered (and not validly withdrawn) as of the expiration of the Offer (as may be extended); provided that SoundThinking shall only be entitled to terminate the Merger Agreement pursuant to Section 8.4(a)(i) of the Merger Agreement within five (5) Business Days from the date Merger Sub shall have failed to commence the Offer within the period specified in Section 1.1(a) of the Merger Agreement; provided, further, that the right to terminate the Merger Agreement pursuant to Section 8.4(a)(i) of the Merger Agreement shall not be available to SoundThinking if SoundThinking has breached in any material respect its obligations under the Merger Agreement in any manner that shall have been the primary cause of the failure of Merger Sub to commence the Offer within the period specified in Section 1.1(a) of the Merger Agreement; |
• | if, prior to the Offer Acceptance Time, the Company Board shall have determined to accept a Superior Proposal or authorized SoundThinking to enter into, and SoundThinking enters into, an Alternative Acquisition Agreement with respect to such Superior Proposal in accordance with Section 6.3(f) of the Merger Agreement; provided that SoundThinking shall have complied in all respects with its obligations with respect to such Superior Proposal and shall pay, or cause to be paid, the Company Termination Fee to Parent as provided pursuant to Section 8.6(b) of the Merger Agreement; |
• | if Parent or Merger Sub shall have breached or failed to perform in any material respect any of its respective covenants or other agreements contained in the Merger Agreement, or if any of the representations, warranties or agreements contained in the Merger Agreement is inaccurate in any material respect, which breach, failure to perform or inaccuracy would or would reasonably be expected to prevent or materially impair Parent or Merger Sub from consummating the Transactions prior to the Outside Date, except that if such breach failure or inaccuracy is capable of being cured prior to the Outside Date, SoundThinking will not be entitled to terminate the Merger Agreement pursuant to Section 8.4(c) of the Merger Agreement prior to the delivery by SoundThinking to Parent of written notice of such breach, delivered at least twenty (20) days prior to such termination (or such shorter period of time as remains prior to the Outside Date (the shorter of such periods, the “Parent Breach Notice Period”)), stating SoundThinking’s intention to terminate the Merger Agreement pursuant to Section 8.4(c) of the Merger Agreement and the basis for such termination, it being understood that SoundThinking will not be entitled to terminate the Merger Agreement if such breach, failure or inaccuracy has been cured prior to the expiration of the Parent Breach Notice Period (to the extent capable of being cured); provided, further, that SoundThinking shall not have the right to terminate the Merger Agreement pursuant to Section 8.4(c) of the Merger Agreement if SoundThinking is then in breach of any representation, warranty, agreement or covenant contained in the Merger Agreement that would result in a failure of any of the Offer Conditions set forth in Annex 1 of the Merger Agreement to be satisfied (if such condition were tested as of the date of such breach). |
• | if the Merger Agreement is validly terminated by SoundThinking pursuant to Section 8.4(b) (Superior Proposal) of the Merger Agreement, SoundThinking shall concurrently with (and as a condition to) such termination, pay, or cause to be paid, to Parent or its designee(s) the Company Termination Fee to the account designated by Parent in writing (to the extent such account(s) has been designated at the time the payment is due and payable), and if not so designated within one (1) Business Day after the later of such termination or the date the account(s) is designated by Parent in writing; |
• | if the Merger Agreement is validly terminated by Parent pursuant to Section 8.3(a) (Company Board Recommendation Change; Breach of Non-Solicit) of the Merger Agreement, then SoundThinking shall |
• | if (A) a bona fide Takeover Proposal shall have been made or proposed to SoundThinking or its stockholders or publicly announced prior to the termination of the Merger Agreement (and not publicly withdrawn at least three (3) Business Days prior to such termination), (B) the Merger Agreement is validly terminated (1) by SoundThinking or Parent pursuant to Section 8.2(c) (Failure of Minimum Condition) of the Merger Agreement, (2) by Parent pursuant to Section 8.3(b) (Company Breach) of the Merger Agreement or (3) by SoundThinking or Parent pursuant to Section 8.2(a) (Outside Date) of the Merger Agreement and at the time of any such termination Parent could have terminated the Merger Agreement pursuant to Section 8.2(c) (Failure of Minimum Condition) of the Merger Agreement or Section 8.3(b) (Company Breach) of the Merger Agreement and (C) within twelve (12) months after the date of such termination, SoundThinking or any of its subsidiaries enters into an agreement, arrangement or understanding providing for the implementation of any Takeover Proposal or any Takeover Proposal is consummated, payment of the Company Termination Fee shall be made within three (3) Business Days after the last to occur of the events set forth in Section 8.6(b)(iii) of the Merger Agreement (except, in the case of the consummation of a Takeover Proposal, the Company Termination Fee shall be paid concurrently with (and as a condition to) the consummation of such Takeover Proposal); provided, however, that for purposes of Section 8.6(b)(iii) of the Merger Agreement, the references to 20% in the definition of “Takeover Proposal” shall be deemed to be references to 50%. |
• | if Revenue for the Company’s ShotSpotter and SafePointe products for the Milestone Period equals or exceeds $73,500,000 (the “Minimum Milestone”), each CVR holder will be entitled to receive $0.50 per CVR; |
• | for each additional $500,000 increment of Revenue for the Company’s ShotSpotter and SafePointe products above $73,500,000 up to and including $75,500,000, each CVR holder will be entitled to receive an additional $0.05 per CVR; and |
• | for each additional $250,000 increment of Revenue for the Company’s ShotSpotter and SafePointe products above $75,500,000 up to and including $87,000,000 (each, an “Additional Milestone”), each CVR holder will be entitled to receive an additional $0.05 per CVR, such that the maximum aggregate payment will not exceed $3.00 per CVR if Revenue for the Company’s ShotSpotter and SafePointe products for the Milestone Period equals or exceeds $87,000,000. |
Purpose of the Offer; Plans for SoundThinking |
Certain Effects of the Offer |
Dividends and Distributions |
Conditions of the Offer |
Certain Legal Matters; Regulatory Approvals |
Appraisal Rights |
• | prior to the later of the consummation of the Offer (which will occur at the date and time of the acceptance for payment of Shares pursuant to and subject to the conditions of the Offer) and twenty (20) days after the mailing of the Schedule 14D-9, deliver to SoundThinking a written demand for appraisal of Shares held, which demand must reasonably inform SoundThinking of the identity of the stockholder and that the stockholder is demanding appraisal; |
• | not tender his, her or its Shares in the Offer; |
• | continuously hold the Shares from the date on which the written demand for appraisal is made through the Effective Time; and |
• | comply with the procedures of Section 262 of the DGCL for perfecting appraisal rights thereafter. |
Fees and Expenses |
Miscellaneous |
Entity | State of Formation | Controlled By | Management | ||||||
Transom Signal MergerSub, Inc. | DE | Transom Signal AcquireCo, LLC | Board of Directors | ||||||
Transom Signal AcquireCo, LLC | DE | Transom Signal MidCo, LLC | Management by the Managing Member | ||||||
Transom Signal MidCo, LLC | DE | Transom Signal HoldCo, Inc. | Management by the Managing Member | ||||||
Transom Signal HoldCo, Inc. | DE | Transom Signal TopCo, LP | Board of Directors | ||||||
Transom Signal TopCo, LP | DE | Transom Capital Fund IV, L.P. | Board of Managers | ||||||
• | Russell Roenick – President |
• | Rob Randolph – Vice President |
• | Nathan Dastic – Treasurer and Secretary |
Name | Citizenship | Principal Occupation or Employment and Five Year Employment History | ||||
Russell Roenick | United States of America | Mr. Roenick serves as Managing Partner of Transom Capital. Mr. Roenick is a co-founder of Transom Capital and has worked at Transom Capital since 2008. | ||||
Rob Randolph | United States of America | Mr. Randolph serves as Executive Vice President of Finance and Operations at Transom Capital. Mr. Randolph has worked at Transom Capital since 2024 and from 2019 to 2021, and previously served as Partner, Operations and Finance at Auto Tire & Parts Inc. (Napa) from 2021 to 2024. | ||||
Nathan Dastic | United States of America | Mr. Dastic serves as Chief Financial Officer & Chief Compliance Officer of Transom Capital. Mr. Dastic has worked at Transom Capital since 2016. | ||||
Name | Citizenship | Principal Occupation or Employment and Five Year Employment History | ||||
Russell Roenick | United States of America | Mr. Roenick serves as Managing Partner of Transom Capital. Mr. Roenick is a co-founder of Transom Capital and has worked at Transom Capital since 2008. | ||||
If delivering by express mail, courier, or other expedited service: | By mail: | ||
Equiniti Trust Company, LLC 1110 Centre Pointe Curve Suite # 101 Mendota Heights, MN 55120 Attn: Onbase - Reorganization Department | Equiniti Trust Company, LLC Operations Center Attn: Onbase - Reorganization Department 1110 Centre Pointe Curve Suite # 101 Mendota Heights, MN 55120 | ||