Elliott Advisors announced Friday morning that it was buying Barnes & Noble in a deal valued at 683 million dollars including debt.
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That breaks down to $6.50 per share, or a premium of 42 percent above Wednesday's closing price.
The company's shares surged about 34 percent on Thursday after the Wall Street Journal reported that a deal was near.
The development comes months after the book retailer revealed in early October that several parties had shown interest in buying them. Among the offers was one from Leonard Riggio, Barnes & Noble’s founder and chairman.
Elliott Advisors is a U.K. based hedge fund that also owns the Waterstones book store chain. The deal now brings together the biggest booksellers in both the U.S. and U.K.
James Daunt, CEO of Waterstones, will assume the role of Barnes & Noble CEO following the completetion of the deal.
“We are pleased to have reached this agreement with Elliott, the owner of Waterstones, a bookseller I have admired over the years, said Leonard Riggio, Founder and Chairman of Barnes & Noble. "In view of the success they have had in the bookselling marketplace, I believe they are uniquely suited to improve and grow our company for many years ahead."
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Barnes & Noble has been struggling in recent years due to competition from Amazon and changing consumer demand.