Viavi Solutions Inc (NASDAQ: VIAV) proclaimed today that it had presented a tender to the board of directors of EXFO Inc (NASDAQ: EXFO) to obtain all of the remaining shares of EXFO for $7.50 (C$9.14 at yesterday’s exchange rate) in money per share. The suggestion values EXFO at about $430 million (C$524 million at yesterday’s exchange rate) on an unadulterated foundation and symbolizes a significant payment of:
103% to the NASDAQ concluding price on June 4, 2021, the trading day before the statement of the going-private deal by EXFO’s majority shareholder, Germain Lamonde; and25% to the $6.00 consideration presented under the Going Private Transaction.
In addition, VIAVI’s offer is at the very high end of the $5.75 to $7.50 formal assessment assortment of EXFO’s subordinate voting shares geared up by TD Securities Inc., acting as the self-governing valuator in association with the Going Private Transaction.
There are clear planned virtues for combining VIAVI and EXFO to construct the leader in interactions test and dimension for the next decade. The power of the collaborative teams and knowledge, united with considerably greater size and financial capital, would allow intense speculation in increase while achieving better-working influence than either company could do unaided. VIAVI values the know-how, ability, and knowledge of the EXFO critical employee aptitude and considers their preservation and continued promise as vital to the arrangement’s achievement. VIAVI proposes to persist with EXFO’s brand and inheritance, recognizing EXFO’s strong standing built on years of class product growth.
VIAVI’s board of directors has collectively accepted the suggestion, and no VIAVI investor vote will be requisite for the deal. In addition, the deal will not be a topic to any financing state.
VIAVI reported cash and cash correspondent of $672 million for the quarter ending April 3, 2021. As per EXFO’s press release proclaiming the Going Private Transaction, EXFO’s mainstream shareholder, Germain Lamonde, has counseled the special team of the EXFO board that he would not deem any substitute alter of control deal. However, VIAVI considers its suggestion offers forceful value to all EXFO shareholders, including Mr. Lamonde.