GVI Security to be Acquired by Private Equity Firm for $11.6M
GVI Security Solutions Inc., which markets the complete line Samsung Electronics video surveillance products, has entered into a definitive agreement to be acquired and taken private by investment funds managed by GenNx360 Capital Partners.
Under the terms of the deal, an affiliate of GenNx360 will commence a tender offer to purchase for cash all of the outstanding shares of GVI common stock for 38 cents per share, without interest and less any applicable withholding taxes, for a total equity value of about $11.6 million.
The tender offer is expected to commence on or before Nov. 4 and will expire on the 20th business day following and including the commencement date, unless extended in accordance with the terms of the merger agreement and the applicable rules and regulations of the SEC.
Following completion of the tender offer, the parties will complete a second-step merger in which any remaining shares of GVI common stock will be converted into the right to receive the same price per share paid in the tender offer. Stockholders representing approximately 22 percent of GVI’s outstanding shares have entered into tender and support agreements with GenNx360 in connection with the transaction.
In a press release, GVI Chairman Steven Walin said the transaction represents a premium of 22.6 percent over GVI’s closing share price on Oct. 21, the last trading day before the merger agreement was signed. GenNx360’s desire to add GVI to its portfolio highlights the company’s solid business model and the significant progress GVI has made in transforming into an important market player, Walin states in the announcement.
“After careful consideration of our strategic alternatives, we are pleased to have reached this agreement with GenNx360, which creates substantial value for our stockholders,” Walin said in the announcement.
Lloyd Trotter, a founder and managing partner of New York-based GenNx360, said he is excited for the private equity firm to enter the security industry in support of the GVI platform.
“The security industry presents attractive growth opportunities and we are looking forward to working with the experienced GVI management team to expand the company’s presence in the marketplace,” Trotter states.
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