Party goods retailer iParty Corp. (IPT) and Party City Holdings Inc., North America's largest party supply retailer, said Friday that they have entered into a definitive merger agreement under which Party City will acquire iParty for $0.45 per share of iParty common stock and the greater of liquidation preference or conversion value for each share of iParty preferred stock, in cash.
The purchase price for iParty Common Stock represents a 200% premium over the closing price of iParty common stock as of February 28.
The deal is currently expected to close during the second quarter of 2013.
Under the merger agreement, iParty will actively solicit superior proposals from third parties for a period of 30 days continuing through March 31, 2013.
The directors, certain executive officers and the Estate of Robert Lessin, Robert H. Lessin Venture Capital, LLC and Boston Millennia Partners, LP, each significant stockholders, have signed agreements with Party City to vote their shares in favor of the merger.
For comments and feedback: editorial@rttnews.com