Francisco Partners has agreed to acquire EF Johnson Technologies Inc. (Nasdaq: EFJI), an Irving, Texas-based provider of secure communications solutions to organizations that protect and save lives. The deal is valued at around $27.8 million, or $1.05 per share.
EF Johnson Technologies, Inc. (Nasdaq: EFJI) today announced that it has entered into a definitive agreement for the Company to be acquired by an affiliate of Francisco Partners, a global technology-focused private equity fund.
The agreement was unanimously approved by EF Johnson Technologies’ Board of Directors. Under the terms of the agreement, stockholders would receive $1.05 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,” said Michael E. Jalbert, Chairman of the Board and Chief Executive Officer of EF Johnson Technologies, Inc. “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.”
“Francisco Partners’ interest in the Company is a clear recognition of the attractiveness of EF Johnson, its business plan and the success that has been achieved,” Mr. Jalbert continued. “Francisco Partners has a strong track record of helping businesses sharpen their strategy and, in this case, also provide transformational growth capital and financing for ongoing operational execution. Under its ownership, EF Johnson Technologies will be better positioned to execute its business plan to the benefit of its customers.”
Commenting on the transaction, Ashutosh Agrawal, Principal at Francisco Partners, said, “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.”
About EF Johnson Technologies, Inc.
Headquartered in Irving, Texas, EF Johnson Technologies, Inc. focuses on innovating, developing and marketing the highest quality secure communications solutions to organizations 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 organizations. The Company’s products are marketed under the EFJohnson, 3e Technologies International, and Transcrypt International names and are Made in America. For more information, visit http://www.EFJohnsonTechnologies.com.
About Francisco Partners
With approximately $5.0 billion of committed capital and offices in San Francisco and London, Francisco Partners is one of the world’s largest technology-focused private equity funds. The firm was founded to pursue structured investments in technology companies undergoing strategic, technological, and operational inflection points. Francisco Partners targets majority and minority investments in private companies, public companies, and divisions of public companies. The principals of Francisco Partners have a proven track record, having invested in excess of $4.0 billion of equity capital in over 50 technology companies. For additional information, visit www.franciscopartners.com.