Vector Capital's exasperation with Captaris Inc. [CAPA] has begun to show. Vector withdrew its $125 million take-private offer for the document management software developer, following through on a promise it made this week in a letter signed by partner Amish Mehta (left).

According to Vector's Tuesday letter to Captaris management, the proposed deal was set to expire Thursday at noon unless Captaris accepted the offer. Captaris apparently replied to acknowledge receipt of the proposal, but said it would be evaluated among other offers. Vector formally pulled the offer Friday morning.

Vector proposed a $4.75 per share deal that represented a 36.1% premium over Captaris' stock price prior to the offer. The private equity firm is already Captaris' largest institutional shareholder at 10.2%, and it has apparently won over stakeholder Emancipation Capital in support of the bid.

The deal included a 30-day "go-shop" period during which Captaris was welcome to solicit alternative offers. Vector had suggested that period could be extended to 45 days upon request. Vector added that any future offers for Captaris "would reflect future market conditions," apparently for better or for worse. Investors swapped Captaris shares for as much as $4.40 Friday, although they were off that peak in afternoon trading. - Paul Bonanos

See March 28 statement from Vector
See March 27 letter from Captaris
See March 25 letter from Vector