ATC Technology Corp. (NASDAQ:ATAC) announced Wednesday that it is moving forward with its acquisition with GENCO Distribution System, Inc., a third-party provider of logistics services for retailers, manufacturers and U.S. government agencies.
The announcement comes after a 30-day “go-shop” period, during which ATC was permitted to solicit alternate proposals to its proposed merger with GENCO.
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During the “go-shop” period, ATC’s financial advisor Robert W. Baird Co. Inc., contacted over 100 potential buyers, including both strategic parties and financial sponsors firms, 14 of which entered into confidentiality agreements and reviewed certain nonpublic information regarding ATC.
ATC CEO Todd R. Peters said the company is now “fully satisfied” that it has concluded a “thorough and rigorous process” in providing maximum consideration to shareholders.
The provider of comprehensive engineered solutions hopes to close on the deal in the fourth quarter of this year, though it remains subject to shareholder approvals.
“The ATC board continues to believe that the merger with GENCO is the best transaction available to ATC and is in the best interest of our stockholders, customers and employees, and the ATC board continues unanimously to recommend the merger to our stockholders for their approval,” Peters said.
The deal calls for ATC to be acquired for $512.6 million in cash, providing shareholders with $25 a share, which represents a 43% premium of the company’s closing stock price before the merger’s announcement.