Hellman & Friedman is paying DoubleClick stockholders $8.50 per share for the outstanding NASDAQ-listed stock in the $1.1 billion (€847 million) deal, which represents a 10.6 percent premium of the stock’s average close over the thirty days preceding the transaction. The company’s $135 million in debt will remain outstanding.
The stock closed at $8.57 on Friday and was down $0.40, or 4.67 percent, to $8.17 in mid-day trading.
Kevin Ryan, the chief financial officer of DoubleClick, said in a Monday conference call that the company began exploring strategic options with private equity firms and strategic companies in October of 2004.
“The board did consider a sale of the entire company and also did consider a sale of some assets,” Ryan said. “We concluded at the end of this process that this was the best option in terms of maximum shareholder value.”
The two private equity firms have worked together on previous transactions, including software firm Blackbaud, medical and automotive claim software provider Mitchell International and casualty insurance software company Vertafore.
Hellman & Friedman started investing their fifth fund, Hellman & Friedman Capital Partners V, in August 2004. It closed on $3.5 billion. JMI Equity focuses solely on business services and software sectors. The firm closed its fourth fund in 1999 on $400 million.