Why Electronics For Imaging Stock Popped Today

What happened

Shares of Electronics For Imaging (NASDAQ: EFII) jumped on Monday after the company announced an agreement to be acquired by an affiliate of Siris Capital Group LLC. As of 12:45 p.m. EDT, the stock was up about 27.2%.

Continue Reading Below

So what

The Siris affiliate has agreed to acquire all outstanding common stock for $37 per share in an all-cash transaction, a 45% premium over the 90-day volume-weighted average price ended on April 12. The deal is valued at approximately $1.7 billion. This comes a few months after the company reported disappointing fourth-quarter results.

Electronics For Imaging may solicit alternative proposals during a 45 day "go-shop" period, and it has the right to terminate the agreement if it finds a better offer.

"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," said Electronics For Imaging CEO Bill Muir.

Now what

The Electronics For Imaging board of directors has unanimously approved the deal, and recommends that shareholders follow suit. A special shareholder meeting will be held after the definitive proxy statement is filed with the SEC. Assuming all goes to plan, the company expects to deal to close by the third quarter of 2019.

10 stocks we like better than Electronics For ImagingWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Electronics For Imaging wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.