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UPDATE: Gerber Scientific, Inc. Signs Definitive Merger Agreement with Vector Capital; Shareholders to Receive $11.00/Share Plus Right to Certain Contingent Cash Payments

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Gerber Scientific, Inc. (NYSE: GRB) and Vector Capital Corporation ("Vector") today announced that they have entered into a definitive merger agreement under which funds affiliated with Vector will acquire the Company.

Under the terms of the merger agreement, the shareholders of the Company will receive $11.00 per share in cash, or approximately $281.8 million in total. The cash consideration represents a 24% premium to the Company's average closing share price over the last 30 days and a 35% premium to the closing share price on Friday, June 10, 2011. In addition to the cash payment, each shareholder of the Company will receive for each share they own a non-transferable right to receive contingent cash payments at future times, if recoveries are made pursuant to certain litigation claims in respect of U.S. Patent 5,537,135 (a computerized "print to cut" technology patent).

After a thorough assessment, the Board of Directors of the Company unanimously adopted the merger agreement.

"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."

Posted-In: M&A News

 

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