PE Group Takes Vizrt Private in $374 Million Deal - TvTechnology

PE Group Takes Vizrt Private in $374 Million Deal

Price represents premium of nearly one-third
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BERGEN, NORWAY—Vizrt is being taken private by private equity investors for $374 million. Nordic Capital Fund VII is paying $5.40 a share, a premium of 32 percent over the Nov. 7 share price and 35 percent over the six-month average. Nordic will join Vizrt with 24 October Holding AG, which is indirectly controlled by Nordic, and NOK Merger Sub Ltd., a subsidiary of 24 October, in what it called a “reverse triangular merger.”

The premium for Vizrt’s shareholders comes after a year of overall growth for the stock, which reached a pre-merger announcement all-time high on Sept. 2, 2014 of $3.72, according to Google Finance. The deal is contingent on shareholder approval, which will be determined at a shareholder meeting scheduled for Dec. 18, 2014. Shareholders representing 51.5 percent of Vizrt shares have indicated favorable votes subject to certain conditions. The board is unanimously recommending it.

“We consider the cash-based offer as fair and in the best interest of our shareholders,” said Dag J. Opedal, chairman of the Vizrt board.

The merger is expected to be completed Jan. 31, 2015, subject to approval. Vizrt and Nordic will then cooperate to get Vizrt delisted from the Oslo Stock Exchange.

ABG Sundal Collier Norge ASA is acting as financial adviser to the Vizrt in connection with the Merger. Carnegie AS is acting as financial adviser to Nordic Capital Fund VIII.