By Lisa Kerner
Charlotte, N.C., March 5 - Vector Capital entered into a definitive agreement for its subsidiary Stealth Acquisition Corp. to acquire SafeNet, Inc. for $28.75 per share in a cash tender offer slated to begin on or before March 12.
The offer is conditioned upon approximately 78% of SafeNet's shares being tendered in the offer, according to a company news release.
SafeNet's board unanimously approved the agreement and recommends its shareholders tender their shares in the 20-day offer.
The transaction, valued at $634 million, is expected to close in the second quarter.
Vector, a private equity firm, will finance the deal using its own equity and through debt financing committed by Deutsche Bank and Citigroup Global Markets.
"Over the past five months, our board of directors engaged in an extremely thorough review of all strategic options available to the company, including a broad solicitation process that resulted in significant competitive interest in our company," SafeNet chairman and chief executive officer Walter Straub said in the release.
"Based on this comprehensive process, the board determined that being acquired by Vector Capital and its partners represents a compelling opportunity that is in the best interest of our shareholders, customers and employees."
SafeNet is an information security company located in Baltimore, Md.
| Acquirer: | Vector Capital
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| Target: | SafeNet, Inc.
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| Transaction value: | $634 million
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| Payment per share: | $28.75
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| Announcement date: | March 5
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | Nasdaq: SFNT: $28.30 on March 2
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