Bidz.com entered into an agreement with Glendon Group Inc., which will take the online retailer private in an all cash acquisition of 78 cents per share. The share price represents a premium of 59.2 percent over the company's closing price of 49 cents per share on May 16. Bidz.com's board of directors approved the merger with one abstention.
Under the agreement, Bidz.com is entitled to actively solicit alternative transaction proposals until June 25. Bidz.com retained Innovus Advisors LLC to assist in that process.
The proposed transaction is expected to close in the fourth quarter of 2012, and is subject to certain closing conditions specified in the merger agreement. Glendon Group has obtained equity financing commitments in an aggregate amount sufficient to complete the merger. There is no financing condition to Glendon Group's obligation to complete the merger.