0001193125-15-385425.txt : 20151123 0001193125-15-385425.hdr.sgml : 20151123 20151123172011 ACCESSION NUMBER: 0001193125-15-385425 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20151123 DATE AS OF CHANGE: 20151123 GROUP MEMBERS: ALEXANDER R. SLUSKY GROUP MEMBERS: VECTOR CAPITAL PARTNERS III, L.P. GROUP MEMBERS: VECTOR CAPITAL PARTNERS IV, L.P. GROUP MEMBERS: VECTOR CAPITAL, L.L.C. GROUP MEMBERS: VECTOR ENTREPENEUR FUND III, L.P. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: Covisint Corp CENTRAL INDEX KEY: 0001563699 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374] IRS NUMBER: 262318591 STATE OF INCORPORATION: MI FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-87856 FILM NUMBER: 151250496 BUSINESS ADDRESS: STREET 1: ONE CAMPUS MARTIUS CITY: DETROIT STATE: MI ZIP: 48226-5099 BUSINESS PHONE: 3132277300 MAIL ADDRESS: STREET 1: ONE CAMPUS MARTIUS CITY: DETROIT STATE: MI ZIP: 48226-5099 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Vector Capital IV, L.P. CENTRAL INDEX KEY: 0001403846 IRS NUMBER: 943311525 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: C/O VECTOR CAPITAL CORPORATION STREET 2: ONE MARKET ST., STEUART TOWER, 23RD FL CITY: SAN FRANCISCO STATE: CA ZIP: 94105 BUSINESS PHONE: 415-293-5000 MAIL ADDRESS: STREET 1: C/O VECTOR CAPITAL CORPORATION STREET 2: ONE MARKET ST., STEUART TOWER, 23RD FL CITY: SAN FRANCISCO STATE: CA ZIP: 94105 FORMER COMPANY: FORMER CONFORMED NAME: VECTOR CAPITAL IV LP DATE OF NAME CHANGE: 20070620 SC 13D 1 d37720dsc13d.htm SCHEDULE 13D Schedule 13D

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

[Rule 13d-101]

Under the Securities Exchange Act of 1934

 

 

COVISINT CORPORATION

(Name of Issuer)

Common Stock, No Par Value

(Title of Class of Securities)

22357R 103

(CUSIP Number)

 

Vector Capital IV L.P.

Vector Capital Partners IV, L.P.

Vector Entrepreneur Fund III, L.P.

Vector Capital Partners III, L.P.

Vector Capital, L.L.C.

Alexander R. Slusky

c/o Vector Capital Management, L.P.

One Market Street, Steuart Tower, 23rd Floor

San Francisco, CA 94105

Telephone: (415) 293-5000

 

With a copy to:

 

Sidley Austin LLP

1001 Page Mill Road

Palo Alto, CA 94304

Telephone: (650) 565-7000

Attn: Martin A. Wellington

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

November 13, 2015

(Date of Event Which Requires Filing of This Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  ¨

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

 

 

 

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 

 

1


CUSIP No. 22357R 103  

 

  1.   

Names of reporting persons:

 

Vector Capital IV, L.P.

  2.  

Check the appropriate box if a member of a group (see instructions)*

(a)  ¨        (b)  x

 

  3.  

SEC use only

 

  4.  

Source of funds (see instructions)*

 

    WK, BK, OO

  5.  

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)    ¨

 

  6.  

Citizenship or place of organization

 

    Delaware

Number of

shares

beneficially

owned by

each

reporting

person

with

 

     7.    

Sole voting power

 

    -0-

     8.   

Shared voting power

 

    2,437,734

     9.   

Sole dispositive power

 

    -0-

   10   

Shared dispositive power

 

    2,437,734

11.  

Aggregate amount beneficially owned by each reporting person

 

    2,437,734

12.  

Check if the aggregate amount in Row (11) excludes certain shares (see instructions)    ¨

 

13.  

Percent of class represented by amount in Row (11)

 

    6.15%

14.  

Type of reporting person (see instructions)

 

    PN

 

2


CUSIP No. 22357R 103  

 

  1.   

Names of reporting persons:

 

Vector Capital Partners IV, L.P.

  2.  

Check the appropriate box if a member of a group (see instructions)*

(a)  ¨        (b)  x

 

  3.  

SEC use only

 

  4.  

Source of funds (see instructions)*

 

    AF

  5.  

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)    ¨

 

  6.  

Citizenship or place of organization

 

    Cayman Islands

Number of

shares

beneficially

owned by

each

reporting

person

with

 

     7.    

Sole voting power

 

    -0-

     8.   

Shared voting power

 

    2,437,734

     9.   

Sole dispositive power

 

    -0-

   10   

Shared dispositive power

 

    2,437,734

11.  

Aggregate amount beneficially owned by each reporting person

 

    2,437,734

12.  

Check if the aggregate amount in Row (11) excludes certain shares (see instructions)    ¨

 

13.  

Percent of class represented by amount in Row (11)

 

    6.15%

14.  

Type of reporting person (see instructions)

 

    PN

 

3


CUSIP No. 22357R 103  

 

  1.   

Names of reporting persons:

 

Vector Entrepreneur Fund III, L.P.

  2.  

Check the appropriate box if a member of a group (see instructions)*

(a)  ¨        (b)  x

 

  3.  

SEC use only

 

  4.  

Source of funds (see instructions)*

 

    WC, BK, OO

  5.  

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)    ¨

 

  6.  

Citizenship or place of organization

 

    Delaware

Number of

shares

beneficially

owned by

each

reporting

person

with

 

     7.    

Sole voting power

 

    -0-

     8.   

Shared voting power

 

    29,609

     9.   

Sole dispositive power

 

    -0-

   10   

Shared dispositive power

 

    29,609

11.  

Aggregate amount beneficially owned by each reporting person

 

    29,609

12.  

Check if the aggregate amount in Row (11) excludes certain shares (see instructions)    ¨

 

13.  

Percent of class represented by amount in Row (11)

 

    0.07%

14.  

Type of reporting person (see instructions)

 

    PN

 

4


CUSIP No. 22357R 103  

 

  1.   

Names of reporting persons:

 

Vector Capital Partners III, L.P.

  2.  

Check the appropriate box if a member of a group (see instructions)*

(a)  ¨        (b)  x

 

  3.  

SEC use only

 

  4.  

Source of funds (see instructions)*

 

    AF

  5.  

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)    ¨

 

  6.  

Citizenship or place of organization

 

    Cayman Islands

Number of

shares

beneficially

owned by

each

reporting

person

with

 

     7.    

Sole voting power

 

    -0-

     8.   

Shared voting power

 

    29,609

     9.   

Sole dispositive power

 

    -0-

   10   

Shared dispositive power

 

    29,609

11.  

Aggregate amount beneficially owned by each reporting person

 

    29,609

12.  

Check if the aggregate amount in Row (11) excludes certain shares (see instructions)    ¨

 

13.  

Percent of class represented by amount in Row (11)

 

    0.07%

14.  

Type of reporting person (see instructions)

 

    PN

 

5


CUSIP No. 22357R 103  

 

  1.   

Names of reporting persons:

 

Vector Capital, L.L.C.

  2.  

Check the appropriate box if a member of a group (see instructions)*

(a)  ¨        (b)  x

 

  3.  

SEC use only

 

  4.  

Source of funds (see instructions)*

 

    AF

  5.  

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)    ¨

 

  6.  

Citizenship or place of organization

 

    Delaware

Number of

shares

beneficially

owned by

each

reporting

person

with

 

     7.    

Sole voting power

 

    -0-

     8.   

Shared voting power

 

    2,467,343

     9.   

Sole dispositive power

 

    -0-

   10   

Shared dispositive power

 

    2,467,343

11.  

Aggregate amount beneficially owned by each reporting person

 

    2,467,343

12.  

Check if the aggregate amount in Row (11) excludes certain shares (see instructions)    ¨

 

13.  

Percent of class represented by amount in Row (11)

 

    6.22%

14.  

Type of reporting person (see instructions)

 

    OO

 

6


CUSIP No. 22357R 103  

 

  1.   

Names of reporting persons:

 

Alexander R. Slusky

  2.  

Check the appropriate box if a member of a group (see instructions)*

(a)  ¨        (b)  x

 

  3.  

SEC use only

 

  4.  

Source of funds (see instructions)*

 

    AF

  5.  

Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e)    ¨

 

  6.  

Citizenship or place of organization

 

    United States

Number of

shares

beneficially

owned by

each

reporting

person

with

 

     7.    

Sole voting power

 

    -0-

     8.   

Shared voting power

 

    2,467,343

     9.   

Sole dispositive power

 

    -0-

   10   

Shared dispositive power

 

    2,467,343

11.  

Aggregate amount beneficially owned by each reporting person

 

    2,467,343

12.  

Check if the aggregate amount in Row (11) excludes certain shares (see instructions)    ¨

 

13.  

Percent of class represented by amount in Row (11)

 

    6.22%

14.  

Type of reporting person (see instructions)

 

    IN

 

7


The information set forth in response to each separate Item below shall be deemed to be a response to all Items where such information is relevant. The information set forth in the Exhibits and Schedule attached hereto is expressly incorporated herein by reference and the response to each item of this Schedule 13D is qualified in its entirety by the provisions of such Exhibits and Schedule.

 

Item 1. Security and Issuer.

This statement on Schedule 13D (this “Statement”) relates to the shares of common stock, no par value per share (the “Shares”), of Covisint Corporation, a Michigan corporation (the “Company”). The address of the principal executive offices of the Company is 26533 Evergreen Road, Suite 500, Southfield, Michigan 48076. As reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, as of November 10, 2015, there were 39,644,054 Shares outstanding.

 

Item 2. Identity and Background.

(a) This statement on Schedule 13D is being filed jointly on behalf of the following persons (collectively, the “Reporting Persons”): (i) Vector Capital IV, L.P., a Delaware limited partnership (“VC IV”), (ii) Vector Capital Partners IV, L.P., a Cayman Islands limited partnership (“VCP IV”), (iii) Vector Entrepreneur Fund III, L.P., a Delaware limited partnership (“VEF III”), (iv) Vector Capital Partners III, L.P., a Cayman Islands limited partnership (“VCP III”), (v) Vector Capital, L.L.C., a Delaware limited liability company (“VC”, and together with VC IV, VCP IV, VEF III and VCP III, “Vector”), and (vii) Alexander R. Slusky, an individual (“Mr. Slusky”). VCP IV is the sole General Partner of VC IV. VCP III is the sole General Partner of VEF III. VC is a General Partner of both VCP III and VCP IV. The agreement among the Reporting Persons relating to the joint filing of this statement is attached to this statement on Schedule 13D as Exhibit 1.

(b) The business address for the Reporting Persons is One Market Street, Steuart Tower, 23rd Floor, San Francisco, CA 94105.

(c) The business of Vector is that of a private limited partnership, engaged in making investments in securities of public and private companies for its own account. The principal employment of Mr. Slusky is as the Managing Director and Chief Investment Officer of Vector Capital Management, L.P., a Delaware limited partnership, which is principally engaged in the business of managing a portfolio of funds, including Vector.

(d) None of the Reporting Persons have, during the last five years, been convicted in a criminal proceeding.

(e) None of the Reporting Persons have, during the last five years, been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

(f) Each of VC IV, VEF III and VC is organized under the laws of the State of Delaware. Each of VCP IV and VCP III is organized under the laws of the Cayman Islands. Mr. Slusky is a United States citizen.

 

Item 3. Source and Amount of Funds or Other Consideration

In a series of transactions completed on November 20, 2015, the Reporting Persons acquired 2,467,343 Shares for approximately $7,262,108.38 in investment capital. The source of funds for this consideration was the available capital of Vector, which may, at any given time, include margin loans made by brokerage firms, borrowings under a working capital line of credit with Silicon Valley Bank or capital contributions from investors in the Vector funds, each in the ordinary course of business.

 

8


Item 4. Purpose of Transaction

The Reporting Persons acquired the Shares for investment in the ordinary course of business, as they believed that the Shares, at market prices when acquired, represented an attractive investment opportunity.

The Reporting Persons have no present plan or proposals that would relate to or result in any of the matters set forth in subparagraphs (a)-(j) of Item 4 of Schedule 13D. The Reporting Persons intend to review their investment in the Company on a continuing basis and have in the past and may in the future engage in discussions with management, the board of directors, other stockholders and other relevant parties concerning the business, operations, board composition, management, strategy and future plans of the Company. Depending on various factors including, without limitation, the results of any such discussions, the Company’s financial position and business strategy, price levels of the Shares, conditions in the securities market and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Company as they deem appropriate including, without limitation, purchasing additional shares or selling some or all of their Shares, engaging in any hedging or similar transactions with respect to the Shares, seeking board representation or taking other action to effect changes in the board composition, ownership structure or operations of the Company, encouraging the Company to pursue one or more strategic transactions and/or otherwise changing their intention with respect to any and all matters referred to in Item 4 of Schedule 13D.

 

Item 5. Interest in Securities of the Issuer

 

  (a) As of the date hereof, the Reporting Persons have the following interest in the securities of the Company:

 

  i. VC IV beneficially owns 2,437,734 Shares, making it the beneficial owner of 6.15% of the Company’s common stock.

 

  ii. VCP IV beneficially owns 2,437,734 Shares, making it the beneficial owner of 6.15% of the Company’s common stock.

 

  iii. VEF III beneficially owns 29,609 Shares, making it the beneficial owner of 0.07% of the Company’s common stock.

 

  iv. VCP III beneficially owns 29,609 Shares, making it the beneficial owner of 0.07% of the Company’s common stock.

 

  v. VC beneficially owns 2,467,343 Shares, making it the beneficial owner of 6.22% of the Company’s common stock.

 

  vi. Mr. Slusky beneficially owns 2,467,343 Shares, making him the beneficial owner of 6.22% of the Company’s common stock.

 

9


  (b) The table below sets forth for the Reporting Persons the number of shares of Common Stock for which there is sole power to vote or to direct the vote, shared power to vote or direct the vote, or sole or shared power to dispose or to direct the disposition.

 

     VC IV      VCP IV      VEF III      VCP III      VC      Mr. Slusky  

Sole Power to Vote/Direct Vote

     0         0            0         0         0   

Shared Power to Vote/Direct Vote

     2,437,734         2,437,734         29,609         29,609         2,467,343         2,467,343   

Sole Power to Dispose/Direct Disposition

     0         0            0         0         0   

Shared Power to Dispose/Direct Disposition

     2,437,734         2,437,734         29,609         29,609         2,467,343         2,467,343   

 

  (c) There have been no purchases or sales of the Company’s common stock by any of the Reporting Persons within the last sixty days, except for the purchases of the Company’s common stock by VC IV and VEF III on the open market as indicated in the table below, which table sets forth the date of each transaction, number of shares purchased in each transaction, and the purchase price per share for the shares purchased in each transaction.

Purchases by VC IV:

 

Date

   Number of Shares Purchased      Purchase Price Per Share  

11/11/2015

     45,584       $  2.1415   

11/12/2015

     22,752       $ 2.1861   

11/13/2015

     318,204       $ 2.1980   

11/16/2015

     24,831       $ 2.1675   

11/17/2015

     34,979       $ 2.1913   

11/18/2015

     14,179       $ 2.2000   

11/19/2015

     45,114       $ 2.1999   

11/20/2015

     5,491       $ 2.2000   

Purchases by VEF III:

 

Date

   Number of Shares Purchased      Purchase Price Per Share  

11/11/2015

     554       $  2.1415   

11/12/2015

     276       $ 2.1861   

11/13/2015

     3,865       $ 2.1980   

11/16/2015

     302       $ 2.1675   

11/17/2015

     425       $ 2.1913   

11/18/2015

     172       $ 2.2000   

11/19/2015

     548       $ 2.1999   

11/20/2015

     67       $ 2.2000   

 

  (d) Not applicable.

 

  (e) Not applicable.

 

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.

The information set forth in Items 3, 4 and 5 above is incorporated herein by reference in its entirety into this Item 6.

Based on the transactions and relationships described herein, the Reporting Persons may be deemed to constitute a “group” for purposes of Section 13(d)(3) of the Exchange Act. The filing of this statement shall not be construed as an admission that the Reporting Persons are a group, or have agreed to act as a group.

 

10


Item 7. Material to Be Filed as Exhibits.

 

Exhibit
Number

  

Document

1    Joint Filing Agreement dated November 23, 2015, by and among VC IV, VCP IV, VEF III, VCP III, VC and Alexander R. Slusky.

 

11


SIGNATURE

After reasonable inquiry and to the best of each of the undersigned’s knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

Dated November 23, 2015

 

VECTOR CAPITAL IV, L.P.
By:   VECTOR CAPITAL PARTNERS IV, L.P., its general partner
By:   VECTOR CAPITAL, L.L.C., its general partner
By:  

/s/ David Baylor

Name:   David Baylor
Title:   Chief Operating Officer
VECTOR CAPITAL PARTNERS IV, L.P.
By:   VECTOR CAPITAL, L.L.C., its general partner
By:  

/s/ David Baylor

Name:   David Baylor
Title:   Chief Operating Officer
VECTOR ENTREPRENEUR FUND III, L.P.
By:   VECTOR CAPITAL PARTNERS III, L.P., its general partner
By:   VECTOR CAPITAL, L.L.C., its general partner
By:  

/s/ David Baylor

Name:   David Baylor
Title:   Chief Operating Officer
VECTOR CAPITAL PARTNERS III, L.P.
By:   VECTOR CAPITAL, L.L.C., its general partner
By:  

/s/ David Baylor

Name:   David Baylor
Title:   Chief Operating Officer
VECTOR CAPITAL, L.L.C.
By:  

/s/ David Baylor

Name:   David Baylor
Title:   Chief Operating Officer
ALEXANDER R. SLUSKY

/s/ Alexander R. Slusky

Alexander R. Slusky

 

12

EX-99.1 2 d37720dex991.htm EXHIBIT 1 Exhibit 1

Exhibit 1

JOINT FILING AGREEMENT

This agreement is made pursuant to Rule 13d-1(k)(1) under the Securities Exchange Act of 1934, as amended (the “Act”) by and among the parties listed below, each referred to herein as a “Joint Filer.” The Joint Filers agree that a statement of beneficial ownership as required by Section 13(d) of the Act and the Rules thereunder may be filed on each of their behalf on Schedule 13D or Schedule 13G, as appropriate, and that said joint filing may thereafter be amended by further joint filings. The Joint Filers state that they each satisfy the requirements for making a joint filing under Rule 13d-1.

Dated: November 23, 2015

 

VECTOR CAPITAL IV, L.P.     VECTOR CAPITAL PARTNERS III, L.P.
By: VECTOR CAPITAL PARTNERS IV, L.P., its general partner     By: VECTOR CAPITAL, L.L.C., its general partner
By: VECTOR CAPITAL, L.L.C., its general partner     By:  

/s/ David Baylor

      Name:   David Baylor
By:  

/s/ David Baylor

    Title:   Chief Operating Officer
Name:   David Baylor      
Title:   Chief Operating Officer     VECTOR CAPITAL, L.L.C.
VECTOR CAPITAL PARTNERS IV, L.P.     By:  

/s/ David Baylor

      Name:   David Baylor
By: VECTOR CAPITAL, L.L.C., its general partner     Title:   Chief Operating Officer
By:  

/s/ David Baylor

    ALEXANDER R. SLUSKY
Name:   David Baylor    
Title:   Chief Operating Officer    

/s/ Alexander R. Slusky

      Alexander R. Slusky
VECTOR ENTREPRENEUR FUND III, L.P.      
By: VECTOR CAPITAL PARTNERS III, L.P., its general partner      
By: VECTOR CAPITAL, L.L.C., its general partner      
By:  

/s/ David Baylor

     
Name:   David Baylor      
Title:   Chief Operating Officer      

 

13