GVI Security Solutions, provider of surveillance systems centered on Samsung electronic products, is throwing in the towel as a publicly traded company,
New York-based GenNx360 Capital Partners, a private equity investment firm focused on mid-cap industrial business-to-business companies, has agreed to take the company for 38 cents a share, for $11.6 million, according to documents filed with the SEC.
That’s 22.6 percent above the stock price’s closing on Wednesday (Oct 21). But it’s a far cry from the value of the company five years ago, when it traded for more than $200 a share.
The tender offer is expected to commence on or before Nov. 4 and to expire on the 20th business day thereafter. After that, the parties will complete a second-step merger in which any remaining shares of GVI common stock will be converted into the right to receive the same price per share paid in the tender offer. Stockholders representing approximately 22 percent of GVI’s outstanding shares have entered into the deal.
“We are excited about the opportunity for GenNx360 to enter the security industry supporting the strong GVI platform,” said Lloyd Trotter, a founder and managing partner at GenNx360. “The security industry presents attractive growth opportunities and we are looking forward to working with the experienced GVI management team to expand the company’s presence in the marketplace.”
The Board of Directors of GVI has unanimously approved the merger agreement and has resolved to recommend that GVI’s stockholders join in.
The deal is subject to regulatory approval.
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