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Siris to acquire EFI
Posted on Tuesday, 16 April 2019 08:20
Siris Capital Group has agreed to acquire US-based customer-focused digital printing innovation group Electronics for Imaging (EFI) for USD 1.70 billion, including debt.
The private equity firm is offering USD 37.00 per item of stock held in the target, at a premium of 25.9 per cent to the company close of USD 29.40 on 12th April, the last trading day prior to the announcement.
Siris has granted the Silicon Valley-based global technology group, a 45-day go-shop period where EFI may solicit offers from third parties and has the right to enter into an agreement if the proposal is superior.
The company claims to be the leading worldwide transformation provider from analogue to digital imaging, developing technologies for the manufacturing of signage, packaging, textiles and personalised documents, among other areas.
Subject to the results of the go-shop period, the transaction is expected to complete in the third quarter of 2019, after receiving the green light from shareholders and regulators.
RBC Capital Markets, KKR Capital Markets and Deutsche Bank Securities, among others, have committed debt financing for the deal, with Siris noting it will use equity provided by investment funds to pay for EFI.
Bill Muir, chief executive of the target, 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.”
EFI said it still plans to publish its first-quarter financials but has no intention on hosting a quarterly earnings call.
Revenue is expected to be between USD 220.00 million and USD 225.00 million for the opening three months of this year.
In the year ended 31st December 2018, EFI posted turnover of USD 1.02 billion, a 2.7 per cent increase on USD 993.26 million in the previous 12 months.
Net loss totalled USD 971,000 in 2018, compared to a loss of USD 15.35 million in 2017.
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