Infogroup, the parent of researcher ORC, has agreed to be acquired by affiliates of CCMP Capital Advisors, LLC for a total of around $635 million, including refinanced debt.
Infogroup’s board unanimously approved the deal, expected to close early this summer, as recommended by its Mergers and Acquisitions Committee. The company’s shareholders will receive $8.00 in cash for each share of common stock.
The transaction is subject to shareholder approval and customary closing conditions.
Infogroup's Chairman of the Board Roger Siboni says the sale follows ‘a lengthy analysis’ and ‘fulfills [the Board’s] commitment to maximize the value of Infogroup for all shareholders.’ CEO Bll Fairfield says the transition from a public to a private company ‘brings many benefits’ to shareholders, clients and employees, including ‘greater stability, focus and flexibility to make the strategic, long-term investments that are needed to advance the Company's leadership position, grow the core business, expand product solution offerings, improve overall cost structures and efficiencies, invest in technology and expand our global reach.’
CCMP Capital MD Kevin O'Brien comments: ‘CCMP has extensive experience in direct marketing and business services. We believe our proprietary operating expertise together with targeted investments in people and systems can help Infogroup accelerate its drive toward higher value-added, 'end-to-end' marketing services and extend its market leadership.’
CCMP, which was the former J.P. Morgan Partners before being spun out by the bank in 2006, has offices in New York, Houston and London. Only last week, it acquired women's accessories and apparel chain Francesca's Collections Inc. for a reported $200 million.
Infogroup founder Vin Gupta, who stepped down as CEO
after losing the Chair in the summer of 2008 over misuse of company money, stands to gross more than $100m from the sale – he holds c.14.8 million shares.
Web sites are at www.Infogroup.com