EFI To Be Acquired by Private-Equity Firm Siris Capital

Electronics For Imaging (EFI), which markets digital imaging technology for commercial and production printing, announced today that it’s entered into a definitive agreement to be acquired by an affiliate of private-equity firm Siris Capital Group in an all-cash transaction valued at approximately $1.7 billion.

Under the terms of the agreement, which has been unanimously approved by the EFI 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 recorded on April 12, 2019.

EFI may solicit alternative acquisition proposals from third parties during a “go-shop” period 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. EFI notes that there’s no guarantee that this process will result in a superior proposal, and that the agreement provides Siris with a customary right to attempt to match a superior proposal.  EFI does not intend to disclose developments with respect to the solicitation process unless and until it determines such disclosure is appropriate or is otherwise required.

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.”

Commenting on the transaction, Frank Baker, a Siris Co-Founder and Managing Partner, said, “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.”

The EFI Board of Directors has unanimously recommended that its shareholders adopt the agreement with Siris. Subject to the “go-shop,” a special meeting of EFI’s shareholders will be held as soon as practicable following the filing of the definitive proxy statement with the U.S. Securities and Exchange Commission(SEC) and subsequent mailing to shareholders.

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. The transaction is not subject to any financing conditions. Upon completion of the acquisition, EFI will become wholly owned by an affiliate of Siris.

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 first-quarter 2019 revenue to be between $220 million and $225 million.

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