Primedia to be bought by TPG in $525m deal
Primedia (NYSE:PRM), the publisher of Apartment Guide and websites such as NewHomeGuide.com and Rentals.com, said Monday it has agreed to be acquired by private equity firm TPG Capital in a deal valued at $525 million, including debt.
The $7.10-per-share agreement, which has already been approved by Primedia's board, comes at a 62% premium to Primedia's closing price of $4.38 per share last Friday, before the deal with TPG was announced. On Monday, the company's shares jumped more than 60% on the New York Stock Exchange to trade at $7.02.
TPG, with $48 billion in assets, said it believes Atlanta-based Primedia will continue to benefit with the transition from print to digital media.
"Primedia is a leading resource for consumers in search of housing," TPG Principal, David Trujillo said.
"We look forward to building upon the company's innovative products and services for consumers searching for the ideal place to live."
The deal, which has already been approved by 58% of Primedia's shareholders, is expected to close in the third quarter.
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