Analogic Corp | $ALOG Stock | Company To Be Acquired For $1.1 Billion By Altaris Capital

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Analogic Corp (NASDAQ: ALOG)

 

Analogic Corp has agreed to be acquired by Altaris Capital Partners LLC, a private investment firm, for $1.1B in cash. Analogic, a provider of cutting-edge security and healthcare solutions, announced on Tuesday that it had agreed to a merger agreement with an affiliate of Altaris.

Analogic Corp

Under the terms of the agreement, Altaris will buy Analogic for $1.1 billion in cash, or $84 a share. The board of directors of Analogic has given the deal a unanimous approval, but it still subject to closing conditions and customary approval. The companies said they expect to close the deal around mid-2018.

Last year on June 6, Analogic publically announced a broad strategic review process. Three months later, the company made another announcement saying it had initiated a sale and that it had involved Citi in the process. Its Board of Directors then created a Strategic Alternatives Committee in October. The committee was composed of three independent directors that steered the sale process.

The Chairman of Analogic’s Board of Directors Bernard Bailey said: “The Board has always sought to maximize stockholder value. The Board initiated a review of strategic alternatives available to Analogic.

This 10-month, comprehensive process resulted in today’s transaction with Altaris that provides stockholders with immediate, substantial, and certain cash value. The Board strongly believes that a transaction with a buyer with strategic assets like Altaris provides maximum value for and is in the best interest of Analogic stockholders.”

Analogic will become a private company and it will no longer list its shares of common stock on any public market. The company’s stock, which is a component of the Nasdaq, ended trading at $96.05, up 1.16% or $1.10 on Tuesday.

Analogic engages in the provision of security technology and leading-edge healthcare solutions to save lives and advance medicine practice. The firm provides its advanced real-time and advanced guidance technologies worldwide.

Its technologies are used to diagnose and treat diseases as well as for detecting threats. Analogic is popular for its market-leading ultrasound systems, such as the BK Ultrasound brand, which is required in various procedures including surgery and urology. The headquarters of the company are in Boston, Massachusetts.

Altaris Capital Partners on the other hand is an equity firm that focuses on the healthcare industry. The firm seeks to invest in companies that are of value to the healthcare industry by reducing costs, aligning the incentives of stakeholders, improving patient outcomes and increasing efficiency. The firm came into existence in 2003 and currently manages $2.4B of equity capital. The headquarters of Altaris are in New York City. 

Sources

https://www.marketwatch.com/story/analogic-agrees-to-11-billion-acquisition-by-altaris-capital-unit-2018-04-10

https://www.reuters.com/article/us-analogic-m-a-altaris-capital-partners/analogic-to-be-taken-private-by-altaris-capital-in-1-1-billion-deal-idUSKBN1HH38T

https://www.wsj.com/articles/private-equity-firm-altaris-to-acquire-analogic-for-1-1-billion-1523396226

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