United States. GVI Security Solutions and GenNx360 Capital Partners, a private equity investment firm, have reached a definitive agreement for the acquisition of the video surveillance solutions provider of Samsung Electronics products.Under the terms of the merger, a subsidiary of GenNx360 will commence an offer to purchase in cash all of GVI's common outstanding shares for $0.38 per share, interest-free and with deduction of applicable withholding taxes, for a total equity value of approximately $11.6 million. The offer is expected to begin on or before November 4 and end on the twentieth (20th) business day from the start date.
"After carefully considering alternative strategies, we are very pleased to have reached an agreement with GenNx360, with which we will create substantial value for our shareholders," said Steven Walin, Chairman of GVI. He also mentioned that this transaction represents a premium of 22.6% over GVI's closing share price as of October 21, 2009, the last day of negotiations before the signing of the agreement.
Lloyd Trotter, founder and managing partner of GenNx360, said this is GenNx360's best opportunity to become part of the security industry with the support of the GVI platform. "The electronic security sector presents growth opportunities and we want to work with the experience of the GVI team and expand the company's presence in the market," he said.
