Blue Nile To Be Bought Out By Bain For $500 Million, a 34% Premium For Shareholders

Blue Nile Inc. announced Monday a deal to be acquired by private-equity firm Bain Capital Private Equity for $500 million. Under terms of the deal, Blue Nile shareholders would receive $40.75 in cash for each share they own, a 34% premium to Friday's closing price, and a level not seen since February 2014. The deal, which is expected to close in the first quarter of 2017, may solicit other buyout proposals during a 30-day go-shop period. "Since its inception, Blue Nile's guiding principle has been to provide value to its customers, suppliers, and shareholders, and this transaction provides tremendous value to all," said Blue Nile Chief Executive Harvey Kanter. "Blue Nile will continue its innovative drive that has disrupted the diamond industry and made us the smartest, easiest, and most pressure-free way for consumers to buy a diamond." Separately, Blue Nile reported third-quarter earnings that rose in line with expectations, and revenue that fell more than forecast. The stock, which has been halted in premarket trade for news until 8:00 a.m. ET, has dropped 18% year to date, while the S&P 500 has gained 2%.

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