Exfo Inc (NASDAQ:EXFO) stock is trading sharply higher in the pre-market session as the company has been agreed to be acquired by Viavi Solutions.
Major Trigger:
VIAVI Announces Proposal to Acquire EXFO at US$7.50 per Share
Key Highlights:
- Viavi Solutions Inc. (“VIAVI”) announced today that it has submitted a proposal (the “Proposal”) to the board of directors of EXFO Inc. (TSX: EXF) (NASDAQ: EXFO) (“EXFO”) to acquire all of the outstanding subordinate voting shares and multiple voting shares of EXFO at a price of US$7.50 (C$9.14 at yesterday’s exchange rate) in cash per share. The Proposal values EXFO at approximately US$430 million (C$524 million at yesterday’s exchange rate) on an undiluted basis, and represents a significant premium of:
- 103% to the NASDAQ closing price on June 4, 2021, the trading day before the announcement of the going private transaction (the “Going Private Transaction”) by EXFO’s majority shareholder, Germain Lamonde; and
- 25% to the US$6.00 consideration offered under the Going Private Transaction.
- In addition, VIAVI’s Proposal is at the exact high end of the US$5.75 to US$7.50 formal valuation range of EXFO’s subordinate voting shares prepared by TD Securities Inc., acting as the independent valuator in connection with the Going Private Transaction.
- VIAVI’s board of directors has unanimously approved the Proposal, and no VIAVI shareholder vote will be required for the transaction. In addition, the transaction will not be subject to any financing condition. VIAVI reported cash and cash equivalents of US$672 million for the quarter ending April 3, 2021.
Market Reaction
As of 9:21, EXFO stock soared 22.50% to $7.26 with 20K shares traded hands. The stock has soared 80% so far this year.
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