Are EFI Shareholders Getting Enough in the Acquisition?

Electronics for Imaging Inc. (NASDAQ: EFII) has announced that it has entered into an agreement to be acquired by Siris Capital Group in an all-cash transaction worth roughly $1.7 billion. Its shares were up sharply on Monday.

Under the terms of the agreement, which was unanimously approved by EFI’s board of directors, an affiliate of Siris will acquire all the outstanding common stock of EFI for $37 per share in cash.

The purchase price represents a 45% premium over EFI’s 90-day volume-weighted average price ended on April 12, 2019.

At the same time, EFI has a “go-shop” clause in the deal, wherein the firm can solicit or entertain offers from other suitors 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.

Subject to the go-shop, 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.

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.

Shares of EFI were last seen up about 29% at $37.99, in a 52-week range of $19.76 to $38.14. The consensus price target is $28.43.

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