Analogic (NSDQ:ALOG) said today it inked a $1.1 billion go-private deal with Altaris Capital Partners.
Peabody, Mass.-based Analogic said that Altaris will offer $84 per share in the deal, which has already been unanimously approved by Analogic’s board of directors.
“Analogic has a rich history of developing advanced technologies that have enabled innovation in medical imaging and security screening. We look forward to building on this heritage and continuing to provide technology-driven imaging solutions and world-class service to the industry,” Altaris co-founder & managing director George Aitken-Davies said in prepared remarks.
The sale follows an internal review Analogic announced last June in which the company sought to explore “strategic alternatives”, which ended with the company contacting approximately 75 potential financial and strategic buyers, domestically and internationally.
Analogic said it explored a number of other options, including a sale of the entire company and separation of its three business units, as well as continued operation on a stand-alone basis.
“The board has always sought to maximize stockholder value. Given the increasingly competitive markets that we serve, we have been focused on the need to achieve greater scale in order to generate sustained profitable growth. As a result, the board initiated a review of strategic alternatives available to Analogic. This 10-month, comprehensive process resulted in today’s transaction with Altaris that provides stockholders with immediate, substantial, and certain cash value. The board strongly believes that a transaction with a buyer with strategic assets like Altaris provides maximum value for and is in the best interest of Analogic stockholders. Analogic’s three business units present a range of business models and investment needs, each of which is subject to its own market conditions. In light of these factors, the Board considered the long-term positioning of Analogic in each of its markets. Analogic’s growth outlook requires continued strategic investment into new channels to market, which involves risk, especially given the pace of change in its served markets,” Analogic board chair Bernard Bailey said in a prepared statement.
Analogic said that the deal represents a 25% premium over its closing share price of $67.45 as reported on June 7, 2017. The company’s shares are trading at $83.11 as of 9:35 a.m. EDT, down 13.5% so far today.
With the acquisition, Altaris will have purchased 17 companies that design and manufacture FDA-regulated medical products, Analogic said.
“Altaris has a broad portfolio of businesses with strong technology and domain expertise in Analogic’s end markets. Altaris is well positioned to enhance Analogic’s ability to deliver innovative product technology and service offerings to our customers,” Analogic prez & CEO Fred Parks said in a press release.
The deal is expected to close in mid-2018 and is subject to approval by Analogic shareholders and regulatory clearance. Citigroup Global Markets is acting as financial advisor to Analogic.
Last month, Analogic saw shares jump after the imaging equipment maker posted fiscal second-quarter numbers that blew past the consensus forecast.