EFI has entered into a definitive agreement to be acquired by an affiliate of Siris Capital Group in an all-cash transaction valued at approximately $1.7 billion USD.
Siris is a private equity firm focused on investing and driving value creation in technology companies that provide mission-critical solutions and are facing technology transitions.
Under the terms of the 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 percent premium over EFI’’s 90-day volume-weighted average price ended on April 12, 2019.
EFI may solicit alternative acquisition proposals from third parties during a ‘go-shop’ period over the next 45 calendar days. 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.
EFI moved out of the digital label printing industry after divesting its Jetrion business to Xeikon, although it maintains an interest in the market through inks and software.
EFI CEO Bill Muir commented: ‘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, 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. 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.’
Siris executive partner Al Zollar added: ‘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. 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.’
Subject to the go-shop period, 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. Upon completion of the acquisition under the terms of the current agreement, EFI will become wholly owned by an affiliate of Siris.