By Lisa Kerner
Charlotte, N.C., Nov. 20 - Image Entertainment, Inc. agreed to be acquired by Nyx Acquisitions, Inc. in a transaction valued at approximately $100 million, including the assumption of Image Entertainment's debt.
The companies' definitive merger agreement gives Image Entertainment stockholders $2.75 per share in cash, an Image Entertainment news release said.
According to Image Entertainment, the offer price is a 299% premium to its closing share price of $0.69 on Nov. 20 and a 267% premium to the 30-day average closing price of $0.75.
The transaction is not subject to financing and is slated to close during the first quarter of 2009.
"Executive management and the company's board of directors never gave up on finding a way to maximize shareholder value, even during a challenging financial environment," Image Entertainment president David Borshell said in the release.
"This deal allows Image Entertainment to expand its overall business and grow as a vertically-integrated entertainment company," Borshell added.
Image Entertainment's board approved the deal and recommends its stockholders also vote in favor of the acquisition.
Raymond James & Associates, Inc. provided a fairness opinion to Image's board.
Image Entertainment is an independent licensee, producer and distributor of home entertainment programming in North America. The company is based in Chatsworth, Calif.
Nyx Acquisitions is a wholly owned subsidiary of Q Black LLC, a privately held, San Francisco-based new media and investment group.
| Acquirer: | Nyx Acquisitions, Inc.
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| Target: | Image Entertainment, Inc.
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| Announcement date: | Nov. 20
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| Transaction total: | $100 million
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| Price per share: | $2.75
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| Expected closing: | First quarter of 2009
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| Stock price for target: | Nasdaq: DISK: $0.80 on Nov. 19
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