InFocus Corporation will be acquired for approximately $39 million (€30 million), entering a definitive merger agreement with Image Holdings Corporation (IHC).
John Hui, an entrepreneur specialising in the technology field, owns Oregon based IHC that snapped up the digital projection specialist. Under the terms of the agreement IHC and its wholly-owned subsidiary, IC Acquisition Corp. (IC), will make an all cash tender offer to acquire all outstanding shares of InFocus stock at $0.95 per share, or approximately $39 million in total.
The Board of Directors unanimously recommended that InFocus shareholders accept and tender their shares into the offer, which represents a 36 per cent premium over the April 9 closing price of $0.70, the last trading day prior to the agreement. The offer will be subject to the tender of a minimum of 65 per cent of InFocus outstanding shares. The offer and a subsequent merger that will result in InFocus becoming a wholly-owned subsidiary of IHC are expected to close in the second quarter of 2009.
Bob O’Malley, president and CEO of InFocus, said: “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.â€