HGGC, California’s leading middle market private equity firm has announced that it will acquire some of RPX Corporation’s shares at a cost of $10.50 per share. RPX Corporation, which deals with patent risk and discovery management solutions made the announcement that after several months of intense negotiations, it is giving up some of its shares to HGGC. In its confirmation message, the firm said that it is accepting the agreed $555 million all-cash transaction deal, the total value of $10.50 each share.
Before RPX Corporation accepted the offer, the company’s Board of Directors evaluated a number of the company’s records, which included capital structure alternatives, financial, and strategic records. After a thorough review of these and other details, the board unanimously approved the acquisition. Although the news about the agreement was first announced at the start of 2018, some time had to pass until its full realization.
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— HGGC (@HGGC_LLC) May 10, 2018
Shelby Bonnie, the Chairman of the Board of Directors at RPX Corporation said that before they would accept any agreement, they had to look into many things. “Over the course of our review, the Board of Directors evaluated a full range of strategic, financial, and capital structure alternatives to best serve the interests of our esteemed stockholders, including a sale and continuing to operate as a standalone public company. After receiving and reviewing numerous proposals, and indications of interest, as well as considering RPX’s current operations and future prospects, the board is entirely confident that this transaction provides great, certain, and immediate value to RPX stockholders.”
On his part, RPX Corporation’s President and Chief Executive Officer (CEO) Marty Roberts said, “We’re thrilled to partner with HGGC to achieve our next phase of growth for our patent risk and discovery management businesses. This transaction provides RPX with strong financial support and added flexibility to achieve our longer-term prospects while providing our current stockholders with secure near-term value. Importantly, HGGC is experienced in building technology-enabled service businesses and is fully aligned with our global team’s strategy in patent risk and discovery management services. With this transaction, our clients at RPX and Inventus will continue to see an uninterrupted high level of service, and we can expect even greater levels of investment in client service going forward.”
HGGC’s Richard Lawson expressed even greater optimism when he said, “At HGGC, we are big believers of RPX mission to deliver management solutions to its clients.”