Electronics For Imaging (EFI) a world leader in digital printing technology, has signed a deal to be acquired by an affiliate of New York-based Siris Capital Group, in an all-cash transaction valued at approximately $US1.7 billion.
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| EFI's VUTEk h superwide-format hybrid inkjet series |
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| "Immediate value to our shareholders": Bill Muir, CEO EFI |
Under the terms of the ‘definitive’ agreement which has been unanimously approved by EFI’s Board of Directors, an affiliate of Siris will acquire all the outstanding common stock of EFI for $37.00 per share in cash.
The purchase price represents an approximately 45% premium over EFI’s 90-day volume-weighted average price ended on April 12, 2019.
Siris is a leading private equity firm “focused on investing and driving value creation in technology companies that provide mission-critical solutions and are facing technology transitions.”
EFI CEO Bill Muir said: “We believe this transaction delivers superior and immediate value to our shareholders while providing us with a partner that can add strategic and operational expertise to our business. We are excited to partner with Siris’ highly experienced team on this next phase of growth for EFI.”
Frank Baker, a Siris co-founder and managing partner, said, “EFI is at the forefront of the digital transition in the imaging and print industry, underpinned by a strong software heritage and culture of innovation.
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| "Increased digital inkjet penetration": Frank Baker, Siris co-founder |
"We believe that, by partnering with Siris, EFI will be well positioned to capture this transformational opportunity associated with increased digital inkjet penetration, industrial automation and software enablement. We are eager to partner with management to help the Company achieve its strategic objectives.”
EFI may solicit alternative acquisition proposals from third parties during a “go-shop” period over the next 45 calendar days.
In a statement, the Silicone Valley-based digital imaging giant said: EFI will have the right to terminate the Agreement to enter into a superior proposal subject to the terms and conditions of the Agreement. There is no guarantee that this process will result in a superior proposal, and the Agreement provides Siris with a customary right to attempt to match a superior proposal. EFI does not intend to disclose developments with respect to the solicitation process unless and until it determines such disclosure is appropriate or is otherwise required.
Subject to the go-shop, a special meeting of EFI’s shareholders will be held as soon as practicable following the filing of the definitive proxy statement with the U.S. Securities and Exchange Commission and subsequent mailing to shareholders.
The proposed transaction is expected to close by the third quarter of 2019 and is subject to approval by EFI’s shareholders, along with the satisfaction of customary closing conditions including antitrust regulatory approvals. The transaction is not subject to any financing conditions. Upon completion of the acquisition, EFI will become wholly owned by an affiliate of Siris.
“EFI has a 30-year legacy of leadership in the digital imaging market, with strong brand equity and a rich history of pioneering innovative solutions for its customers,” said Al Zollar, a Siris executive partner. “The Company’s portfolio of mission-critical products and services are united by a common thread of impressive technological enablement and software integration. I look forward to supporting EFI’s strong team to help the Company anticipate evolving customer needs and drive new opportunities for innovation and growth.”
EFI currently expects Q1 2019 revenue to be between $220 million and $225 million.
EFI develops technologies for the manufacturing of signage, packaging, textiles, ceramic tiles, and personalized documents, with a wide range of printers, inks, digital front ends, and a comprehensive business and production workflow suite that transforms and streamlines the entire production process.
