Digital River Acquired For $840 Million

Digital River Acquired For $840 Million

The company will have a 45-day window to solicit more lucrative offers.

Digital River Inc. is going into private ownership after agreeing to acquisition by an investment firm for $840 million.
 
The e-commerce software company based in Minnetonka announced Thursday that New York-based Siris Capital Group LLC planned to purchase all common stock for $26 per share. That represented about a 50 percent premium over Thursday’s closing price.
 
“We believe that this transaction will provide Digital River with the flexibility to innovate and execute our vision of setting the standard for global e-commerce technology and services,” Digital River CEO David Dobson said in a statement.
 
Part of the purchase agreement is a “go-shop” period. This clause gives Digital River 45 days to solicit other acquisition proposals from outside groups, though the company noted “there is no guarantee that this process will result in a superior proposal.”
 
Pending regulatory approval, the deal is expected to close in the first quarter of 2015.
 
Digital River’s stock moved rapidly following the announcement. By midday Friday, it was up nearly 50 percent to $25.55 per share.