LECG Corporation Announces Stockholder Approval of SMART Merger

LECG, a global expert services firm, announced in December that its stockholders have approved the merger with SMART Business Advisory & Consulting, LLC, a privately held provider of business advisory services, and the related proposal for LECG to receive a $25 million cash investment from SMART’s majority shareholder, Great Hill Partners, as described in the proxy statement for LECG’s annual meeting. The election of directors and all the other proposals in the proxy statement were also approved by the stockholders.

Upon the closing of the merger, LECG will issue approximately 10.9 million shares of common stock to acquire all of SMART’s outstanding shares, and LECG will issue approximately 6.3 million shares of a newly created Series A Convertible Redeemable Preferred Stock at a purchase price of $3.96 per share, for total proceeds of $25 million in cash. Each share of preferred stock is convertible into one share of LECG common stock. The conversion rate is subject to adjustment upon the occurrence of certain events.

The closing of the transactions is dependent upon the company obtaining necessary bank financing and satisfaction of other customary closing conditions to be fulfilled by the parties. Michael Jeffery will continue as CEO until the transaction formally closes. LECG Corporation and SMART Business Advisory & Consulting, LLC currently expect to complete the merger and the related financings by the end of January.