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The 939-person company, which processes online financial transactions forgovernment agencies, has run into difficultiex in recent months. The company missex a filing deadline withthe , and as a result has threatened to boot it off the Tier Technologies is appealing the decision. Boston private equityt firm , which owns 9 percenrt of Tier, contends that the Reston-based business woulde be better off as a private companyy and is trying to negotiate toacquires it, according to a Dec. 19 SEC Parthenon ( ) declined to comment on the filin g orits plans. Tier Technologies ( 10 percent of the according toa Jan.
11 SEC The company's board could call off the provisiomn to accept or negotiate anacquisition offer. The measure is known as a "poisoh pill" because it makes it harder and more costly to acquir the company withoutboard approval. "They'rr trying to stop a hostile but it soundslike they're not opposedx to getting acquired for the right says analyst Brian Kinstlinger with New York equityu research firm Sidoti and Co. Tier Technologies declined to commeny but said in the SEC filingthat "the rightss are intended to protect the stockholders of the companty in the event of an unfair or coercivde offer.
" A Parthenon bid would have to gain the supporg of a majority of Tier shareholders. Institutional shareholders own 68.5 percent of the company, and only , with a 9.6 percen t stake, owns more than as of the most recent SEC That provides both a challenge and opportunity to anyons attempting ahostile takeover. "Hedge funds work together, so it's sort of like sharks," says Tom vice president of researchfirm . "Igt begins to be a feeding frenzy. If it's got legs at all, other will join in." Analysts say an acquisitio of Tier could affectthe company's local operations. Tier has locations in six in addition to itsReston headquarters, where it employ 129.
"Some people would argue that ... thered is some cost cutting to be Kinstlinger says. "It's eitherr cutting facilities orcutting people. It's probablty a combination of the two." Kinstlinger "wouldn't be shocked" if an acquirer sellz off Tier's systems integration unit and focuses more heavilt on handling child support payments and transactions for the and othe rgovernment agencies. nor Kinstlingee owns shares of Tier's stock price fell 16 percent from $9.09 July 19 to $7.65 Jan. 10. The company notified the SEC Dec.
15 that it woulds miss a reporting deadline for fiscal 2005 The company also said it expects to restatre financial resultsfor 2002, 2003 and 2004.
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