Digital printing company Electronics For Imaging Inc said on Monday private equity firm Siris Capital Group LLC would buy the company for about $1.6 billion in cash.
The $37-per-share offer represents a premium of about 26 percent to the company’s closing price on Friday.
The deal, which has been approved by Electronics For Imaging’s (EFI) board, includes a 45-day “go-shop” period, which allows the company to consider alternative offers, it said.
Including debt, the deal is valued at about $1.7 billion.
In its latest reported quarter, EFI’s revenue slid 5 percent on weakness in its key industrial inkjet business, which accounts for more than half of the company’s overall revenue.
The deal is expected to close by the third quarter of 2019.
EFI also said it would file its first-quarter report but does not intend to host a quarterly earnings call. It expects first-quarter revenue to be between $220 million and $225 million.
Siris has secured committed debt financing for the deal from RBC Capital Markets, KKR Capital Markets LLC, Deutsche Bank Securities Inc, Barclays, Credit Suisse, and Macquarie Capital, EFI said in a statement.
Sidley Austin LLP is serving as corporate counsel, Kirkland & Ellis LLP as financing counsel, and RBC Capital Markets as M&A adviser to Siris.
Morgan Stanley and Greenhill are financial advisers to EFI, while O’Melveny & Myers is the legal counsel.
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