Business software maker American Software Inc offered to buy the remaining outstanding shares of Logility Inc that it does not already own for $7.02 per share in cash through a tender offer.

Shares of American Software were up 5 percent at $5.14, while Logility stock was down 1 cent at $6.96 Friday morning on Nasdaq.

The offer is valued at about $90.5 million, based on the number of Logility shares outstanding as at Dec. 10, 2008.

American Software, which currently owns about 88 percent equity interest in the supply chain management software provider, plans to finance the deal with cash on hand.

If American Software owns 90 percent of Logility's equity upon expiration of the tender offer, Logility would become a wholly owned subsidiary of American Software.

Logility said its special committee would recommend that shareholders accept the tender offer, which is scheduled to expire on June 22.

(Reporting by Deepti Govind in Bangalore; Editing by Deepak Kannan)