Memsic, Inc. (MEMS) announced that it has agreed to be acquired by IDG-Accel China Capital II, L.P. and its affiliates MZ Investment Holdings Limited and MZ Investment Holdings Merger Sub Limited, for $4.225 per share in cash.
Affiliates of IDG currently hold about 19.5% of the company's outstanding common stock. IDG and its affiliates will acquire all the outstanding shares of common stock of MEMSIC that are not currently owned by them, including shares underlying outstanding in-the-money equity awards, for about $88.5 million.
The price of $4.225 per share in cash represents a premium of 143% over the $1.74 closing price of MEMSIC's common stock on November 20, 2012, the last trading day before the company announced that it had received a non-binding proposal from IDG-Accel China Growth Fund II L.P. to acquire the company for $4.00 per share.
The company said that its Chairman of the Board and Chief Executive Officer, Yang Zhao, and director Quan Zhou were not members of the Special Committee and did not participate in the deliberations of the Board of Directors approving the merger. Zhou is an affiliate of IDG. Zhao will remain employed by the company following the acquisition and will also participate as an equity investor in the acquiring company.
The merger agreement is subject to customary conditions, including a vote of the company's stockholders. The transaction is expected to close during the third quarter of 2013.
For comments and feedback: editorial@rttnews.com