By Lisa Kerner
Charlotte, N.C., Feb. 22 - Imperium Partners Group, LLC will take ESS Technology Inc. private for $1.64 per share, or about $58 million, it was announced on Friday.
The per-share price is a 36.67% premium over ESS Technology's closing price on Feb. 21.
ESS Technology agreed to the merger following a review of strategic transactions, a company news release stated.
The transaction is anticipated to close in mid-2008, subject to shareholder approval.
Imperium Partners' merger agreement with ESS Technology contains certain termination rights for both companies, according to an 8-K filing with the Securities and Exchange Commission.
ESS may be obligated to pay Imperium a termination fee of $1,981,000 plus reimbursement of expenses up to $500,000.
ESS Technology designs and markets high-performance digital video processors for the consumer market. The company is based in Fremont, Calif.
Imperium Partners is a New York institutional asset management firm.
| Acquirer: | Imperium Partners Group, LLC
|
| Target: | ESS Technology Inc.
|
| Announcement date: | Feb. 22
|
| Transaction total: | $58 million
|
| Price per share: | $1.64
|
| Break-up fee: | $1,981,000 plus reimbursement of up to $500,000 of expenses
|
| Expected closing: | Mid-2008
|
| Stock price of target: | Nasdaq: ESST; $1.20 on Feb. 21
|
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