Electronics For Imaging Inc. (EFI), the parent company of EFI Manchester, has entered into a definitive agreement to be acquired by an affiliate of Siris Capital Group (Siris) in an all-cash transaction valued at about $1.7 billion.
Under the terms of the agreement, which were 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.
Ken Hanulec, VP marketing, for EFI Display Graphics, says they anticipate "absolutely no impact" on EFI Manchester, which makes up about 10 percent of the 3,500 employees worldwide. He says the acquisition bolsters the company’s position for the future.
Hanulec says the firm just celebrated the one-year anniversary of its NH facility, which was designed to accommodate future expansions. “The fact they made plans to acquire [EFI] shows Siris is committed to the long-term growth of the businesses,” Hanulec says. “We expect continue to grow and advance and leverage all the good thing about New Hampshire.”
As is required, EFI may solicit alternative acquisition proposals from third parties during a “go-shop” period over the next 45 calendar days and will have the right to terminate the agreement to enter into a superior proposal subject to the terms and conditions of the agreement. Hanulec says assuming everything goes through, the process typically takes 60-90 days, putting them on track to complete the acquisition by the third quarter of this year
In a statement, EFI CEO Bill Muir said the transaction delivers superior and immediate value to shareholders while providing EFI with a partner that can add strategic and operational expertise to its 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 in a statement, “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.”
EFI will file its quarterly report on Form 10-Q reporting its first quarter financial results but does not intend to host a quarterly earnings call. EFI currently expects Q1 2019 revenue to be between $220 million and $225 million, according to the statement.