The all-cash transaction is expected to be completed in the fourth quarter of this year, subject to customary closing conditions, and will result in de-listing of CSI common stock from all the public markets
CSI to be acquired by Centerbridge, Bridgeport. (Credit: PublicDomainPictures from Pixabay)
US-based private investment firms Centerbridge Partners and Bridgeport Partners have signed a definitive agreement to acquire Computer Services Inc. (CSI), for a total of $1.6bn.
Under the terms of the agreement, CSI shareholders are expected to receive a cash consideration of $58 per share, upon closing of the transaction.
The all-cash transaction has been unanimously approved by CSI’s board of directors.
It is expected to be completed in the fourth quarter of this year, subject to customary closing conditions including CSI shareholder approval and regulatory review.
Upon closing of the acquisition, CSI will become a privately held company, and its common stock will be de-listed from all the public markets.
The purchase price represents a 53% premium to its closing stock price on 19 August, and a premium of 54.4% over 30-day volume-weighted average share price, said CSI.
CSI board chairman Steve Powless said: “After a thorough strategic review, the CSI board of directors is very pleased to announce this transaction and believes it is in the best interests of our shareholders.
“Upon completion of the transaction, CSI intends to continue operating under the leadership of CEO David Culbertson and the CSI leadership team, with its headquarters expected to remain in Paducah, Kentucky.”
Centerbridge Partners is a multi-strategy private investment firm, focused on financial services and technology, private equity, private credit and real estate.
Bridgeport is a private investment firm engaged in investing across public and private markets with a long-term value-oriented approach.
In relation with the transaction, its entire board of directors, along with founder and chairman emeritus John A Williams, have voted in favour of the transaction, said the company.
Williams commented, “Having formed CSI nearly six decades ago, I am pleased to support this transaction as it will provide shareholders with immediate cash at a compelling value premium.
“In addition, I believe that our customers, employees and communities can rest assured that, based on their history, current management, Centerbridge and Bridgeport will continue CSI’s legacy.”
Raymond James & Associates, and Moelis & Co. served as co-financial advisors, and Nelson Mullins Riley & Scarborough as legal counsel to CSI, on this transaction.
Goldman Sachs & Co. and Jefferies served as financial advisors to Centerbridge and Bridgeport, while Kirkland & Ellis served as legal counsel to Centerbridge alone.
Aviditi Financial served as a capital markets advisor, while Weil, Gotshal and Manges served as legal counsel to Bridgeport.