Beverly Hills-Based Platinum Equity To Acquire Electro Rent
Posted: Tuesday, May 31, 2016 – 11:13 AM
The global Beverly Hills-based investment firm Platinum Equity will acquire Electro Rent — a Van Nuys company focussed on the rental, leasing and sales of general purpose electronic test equipment, personal computers and servers — for around $323.4 million, or $13.12 per share, in an all-cash transaction, the two companies announced today.
The price represents a premium of 24.4 percent over the closing price on May 27, 2016, and 34.8 percent over the average closing price of Electro Rent’s common stock over the past three three months, a statement said, adding that as a result of the definitive agreement Electro Rent will not pay its next quarterly common stock dividend, scheduled for July 2016.
The transaction is expected to close in the next 90 to 120 days, subject to customary closing conditions, including the approval of Electro Rent’s stockholders and various regulatory agencies. After that, Electro Rent common stock will no longer be publicly traded.
Steven Markheim, recently named chief executive officer at Electro Rent, and Allen Sciarillo, recently named chief financial officer, will retain their current roles under the ownership of Platinum Equity.