InFocus to Be Acquired
InFocus Corp. has entered into a definitive merger agreement with Image Holding Corp., an Oregon-based company controlled by John Hui, co-founder of e-Machines. Under the terms of the agreement, IHC and its wholly owned subsidiary, IC Acquisition Corp., will make an all-cash tender offer to acquire all outstanding shares of InFocus.
InFocus Corp. has entered into a definitive merger agreement with Image Holding Corp., an Oregon-based company controlled by John Hui, co-founder of e-Machines. Under the terms of the agreement, IHC and its wholly owned subsidiary, IC Acquisition Corp., will make an all-cash tender offer to acquire all outstanding shares of InFocus stock at $0.95 per share, or approximately $39 million total.
The offer represents a 36-percent premium over the April 9 closing price of $0.70 per share, the last trading day prior to the agreement. If it goes through, InFocus will become a wholly owned subsidiary of IHC. Officials expect the deal to close in the second quarter of 2009.
“After an extensive review of strategic alternatives with InFocus management and our financial advisors, we determined this all-cash sale of InFocus to IHC provides the best value for InFocus shareholders,” said Michael Hallman, the lead independent member of the InFocus Board of Directors, in a statement.
“In addition to delivering compelling value to our shareholders, the partnership with IHC also creates clear benefits for InFocus customers, suppliers, and employees,” said Bob O’Malley, the president and CEO of InFocus. “John Hui understands the technology industry and will assist InFocus in the execution of its strategy. Operating as a privately held company is expected to reduce our costs and facilitate our ability to focus on longer-term priorities. While this is a very big step for InFocus internally, our commitment to delivering innovative projection solutions has not changed.”
