Ray Kachatorian
Upon completion
of the sale to private equity firm Rizvi Traverse, the maker of 3D film
projectors will become a privately-held company.
RealD earlier this year said it
would be exploring "a full range of strategic alternatives" that
could lead to a sale of the provider of 3D technology for films.
On Monday, the company said it
has agreed to be acquired by Rizvi Traverse Management, a private equity
investor in the media, entertainment and technology sectors, for $11 per share,
in an all-cash transaction valued at approximately $551 million, including net
debt.
Upon completion of the deal,
RealD will become a privately-held company. The RealD board has approved the
agreement and recommends that RealD shareholders vote in favor of the
transaction, the company said.
Frank Biondi Jr., lead
independent director of RealD, said: "Over the past year, the RealD board
of directors, in consultation with its advisors, has engaged in a comprehensive
review of strategic alternatives to enhance value for shareholders. This
transaction with Rizvi Traverse concludes that review and provides immediate
and substantial cash value to RealD shareholders at a significant premium to
the company’s unaffected share price.”
Michael Lewis, chairman and CEO
of RealD, said: "Since founding RealD in 2003, we have built the company
into the world’s leading 3D cinema platform, with over 27,000 worldwide
screens. I am excited about the future of RealD, where in partnership with
Rizvi Traverse, we can continue to maximize the value inherent in RealD’s
cinema platform and leading IP portfolio. As a private company, RealD will have
the flexibility and resources to further invest in our continued cinema
leadership and visual technology innovation."
RealD said Lewis plans to
reinvest his stake in the company into the transaction and "has signed
customary support agreements pursuant to which he has agreed to vote his shares
in favor of the merger." Lewis will continue to serve in the role of
chairman and CEO of RealD.
The Hollywood Reporter by Georg Szalai 11/9/2015
6:09am PST
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