By Jennifer Chiou
New York, Oct. 2 - Printronix, Inc. said it signed a definitive agreement to be acquired by Vector Capital Corp.
Under the agreement, Printronix stockholders will receive $16.00 in cash for each share owned, representing a total price of $108 million and an 18.3% premium over Printronix's closing price on Oct. 1.
Printronix said its board of directors, acting on the unanimous recommendation of a special committee of independent directors, has approved the merger agreement and recommends that Printronix stockholders support the transaction.
"We believe this transaction delivers outstanding value for our stockholders and better positions the company to succeed in the global printer market," Robert Kleist, president and chief executive officer and largest shareholder of Printronix, said in a news release.
Kleist and the current executive management team of Printronix will remain in their current positions with the company.
"The acquisition of Printronix during this volatile time in the financial markets exemplifies Vector's expertise in helping businesses navigate through complex situations," Amish Mehta, partner at Vector Capital, said in the release.
Kleist and other members of senior management are expected to own 9.9% of the company after completion of the transaction.
Closing is subject to approval by holders of a majority of Printronix's common stock.
Vector is a San Francisco-based private equity firm specializing in buyouts, spinouts and recapitalizations of established technology businesses.
Based in Irvine, Calif., Printronix is a provider of industrial and back-office enterprise printing services.
| Acquirer: | Vector Capital Corp.
|
| Target: | Printronix, Inc.
|
| Transaction value: | $108 million
|
| Payment per share: | $16.00
|
| Announcement date: | Oct. 2
|
| Stock price for target: | Nasdaq: PTNX; $13.52 on Oct. 1
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
