Vector offered $9 per share for the Pink Sheets-listed company, which delisted from the Nasdaq in 2013. Saba shares closed at $8.80, just before the deal was announced.
The SEC said earlier on Tuesday that two former Saba chief financial officers agreed to repay nearly half a million dollars in combined bonuses and stock profits over the fraud, which involved falsified time-sheets by consultants at an Indian subsidiary.
Founder and former Chief Executive Babak “Bobby” Yazdani agreed in September to repay $2.57 million of bonuses, incentive pay and profit from stock sales.
Yazdani, who founded Redwood Shores, Calif.-based Saba in 1997, resigned as CEO in March 2013.
Morgan Stanley & Co LLC is financial adviser to Saba, while Morrison & Foerster is legal adviser. Law firm Shearman & Sterling is advising Vector.
(Reporting by Abhirup Roy; Editing by Ted Kerr)