HGGC to acquire Monotype from USD825m
Middle market private equity firm HGGC is to acquire all outstanding shares of Monotype Holdings’s common stock for USD19.85 per share in cash, representing an aggregate equity value of approximately USD825 million.
The USD19.85 per share cash consideration represents a premium of approximately 23 per cent to Monotype’s closing share price on July 25, 2019, the last full trading day before today’s announcement. The transaction, which was unanimously approved by Monotype’s Board of Directors, is expected to close in the fourth quarter of 2019. Following completion of the transaction, Monotype expects it will remain headquartered in Woburn, MA.
Pamela Lenehan, Chair of the Monotype Board of Directors, says: “We are pleased to reach this agreement with HGGC, which enables our shareholders to realise immediate value at a significant premium for their shares. This transaction is clear recognition of the tremendous value and reputation that Monotype has built.”
Scott Landers, President and Chief Executive Officer, says: “Over the last several years, Monotype has strategically shifted its business from primarily serving a small group of OEM manufacturers to one that addresses the needs of thousands of brands and millions of creative professionals worldwide. As a private company, we will have the financial support and added flexibility to invest in ways that deliver more value and improve the overall experience for our customers. This transaction is a testament to our talented employees and their dedication to serving our customers, and we look forward to partnering with HGGC as we continue helping customers maximise their customer engagement in today’s digital, mobile and global landscape.”
Rich Lawson, CEO and Co-Founder at HGGC, says: “We have been impressed with the quality and expertise of the Monotype team led by Scott, whose relentless commitment to customers has helped brands realise their full identity and express it to the world. We look forward to working together to help advance Monotype’s strategy and continue delivering the products and services that allow for brand expression and differentiation.”
“We are honorued to partner with Monotype, a proven innovator that is continually pushing the boundaries with next-generation font technology and creative customer-centric solutions,” says David Chung, Executive Director at HGGC.
“As a private company, Monotype will be well positioned to fully leverage its world-class intellectual property and design capabilities to generate growth and become a greater resource to thousands of customers around the world,” adds Bill Conrad, Principal at HGGC.