Tolland manufacturing equipment maker Gerber Scientific Inc. said Monday it will sell itself to private equity firm Vector Capital Corp. for about $281.8 million, The Associated Press reports.
The deal is valued at $11 per share, a 35 percent premium to Gerber’s closing price on Friday. It has been unanimously approved by the company’s board.
“This merger is a very positive development for our shareholders, employees, customers and business partners,” said Donald P. Aiken, Gerber Scientific Chairman of the Board. “We are very excited to open a new chapter in our 60+ year heritage as a technology innovator through our new partnership with Vector, a leading technology investment firm. Vector has a proven track record as a value-added partner to its portfolio companies, and we believe that their technology expertise and financial resources will enable us to continue to provide superior products and service to our customers worldwide, while growing our global footprint.”
Shares of Gerber leaped $2.74, or 34 percent, to $10.86 in pre-market trading after the announcement. The stock’s year-high was $9.90.
The agreement allows Gerber to solicit alternative proposals through July 25. If the board doesn’t get a better offer, the acquisition is expected to close later this year. It still requires shareholder approval.
Gerber makes equipment used for signs, specialty graphics, apparel and optical lenses.
