By Lisa Kerner
Charlotte, N.C., June 16 - Greenfield Online, Inc. announced it agreed to be acquired by an entity affiliated with Quadrangle Group LLC, a private investment firm.
Quadrangle will acquire all of the outstanding common stock of Greenfield Online for $15.50 per share in cash, or a total equity value of approximately $426 million, a Greenfield Online news release said.
The offer price is a 17% premium over Greenfield Online's closing share price of $13.28 on June 13 and a 26% premium over the average closing share price during the prior 30 days.
Greenfield Online's board of directors unanimously approved the merger, which is expected to close late in the third quarter or in the fourth quarter of 2008 subject to shareholder approval.
According to Greenfield Online, the transaction will be financed by a combination of equity provided by Quadrangle and debt, for which Quadrangle has received financing commitments, and cash on hand.
A $12.5 million termination fee is included in the merger agreement, it was reported in a form 8-K filed with the Securities and Exchange Commission.
"Greenfield Online's internet-based business differentiates itself with a strategic position based on developing strong communities and offering valuable review and survey content," Quadrangle operating principal Dan Rosensweig stated in the release.
"I am confident that with Quadrangle's extensive experience in online businesses, we will be able to help the company to expand its activities and continue to achieve significant growth," Rosensweig added.
Deutsche Bank Securities Inc. advised Greenfield Online in connection with the proposed merger.
Greenfield Online provides internet survey and comparison shopping solutions primarily in North America and Europe. The company is based in Wilton, Conn.
| Acquirer: | Quadrangle Group LLC
|
| Target: | Greenfield Online, Inc.
|
| Announcement date: | June 16
|
| Transaction total: | $426 million
|
| Price per share: | $15.50
|
| Termination fee: | $12.5 million
|
| Expected closing: | Late third quarter or early fourth quarter of 2008
|
| Stock price of target: | Nasdaq: SRVY: $13.28 on June 13
|
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