EF Johnson Technologies has entered into a definitive agreement to be acquired by an affiliate of Francisco Partners, a technology-focused private equity fund.
Headquartered in Irving, Texas, EF Johnson Technologies focuses on developing and marketing the secure communications solutions to organisations whose mission is to protect and save lives.
The company’s customers include first responders in public safety and public service, the federal government, and industrial organisations.
The agreement was unanimously approved by EF Johnson Technologies’ board of directors.
Under the terms of the agreement, stockholders would receive USD1.05 per share in cash at closing.
The transaction is subject to normal regulatory approvals, approval by EF Johnson Technologies’ stockholders and other customary closing conditions, and is expected to close during the third quarter of the year.
"The board considered a range of potential alternatives, including continuing to operate as an independent entity, the possibility of the sale of certain assets, and the returns and dilution associated with issuing additional equity in a private offering," says Michael E. Jalbert (pictured), chairman of the board and chief executive officer of EF Johnson Technologies. "After this thorough review process, our board of directors unanimously concluded that this transaction with Francisco Partners is in the best interests of our stockholders."
Ashutosh Agrawal, principal at Francisco Partners, adds: "EF Johnson has a long history of providing quality products and services to customers in its core markets. We are looking forward to partnering with the company’s management to enable the achievement of the company’s long-term growth potential."
