Gerber Signs Merger Agreement with Private-Equity Firm Vector Capital
“We are very excited to open a new chapter in our 60-plus-year heritage as a technology innovator.”
Gerber Scientific, Inc. and Vector Capital Corporation have entered into a definitive merger agreement in which funds affiliated with Vector will acquire Gerber Scientific. Vector Capital, based in San Francisco, is a global private-equity firm specializing in spinouts, buyouts, and recapitalizations of established technology businesses. Among Vector's notable investments are Corel, Aladdin Knowledge Systems, Certara, LanDesk, Precise Software, Printronix, RAE Systems, SafeNet, Savi Technology, Trafficmaster, WatchGuard Technologies, and WinZip.
“This merger is a very positive development for our shareholders, employees, customers, and business partners,” says Donald P. Aiken, Gerber Scientific chairman of the board. “We are very excited to open a new chapter in our 60-plus-year heritage as a technology innovator through our new partnership with Vector…. Vector has a proven track record as a value-added partner to its portfolio companies, and we believe that their technology expertise and financial resources will enable us to continue to provide superior products and service to our customers worldwide, while growing our global footprint.”
Amish Mehta, a partner at Vector, adds: "We are very excited to partner with Gerber Scientific’s talented team to continue to grow their leading technology business. The business that Gerber Scientific’s team has built, coupled with its great product offerings, makes it an ideal fit for our portfolio of cutting-edge technology companies. We believe our support, combined with Gerber Scientific’s product strategy, employee talent, and strong customer relationships will enable Gerber Scientific to further define itself as a leading player in the apparel and industrial market segment."
The transaction is expected to close in the second half of calendar 2011. Gerber shareholders will receive $11 per share in cash. In addition to the cash payment, each Gerber shareholder will receive for each share they own a non-transferable right to receive contingent cash payments at future times, if recoveries are made pursuant to certain litigation claims in respect of US Patent 5,537,135 (a computerized “print to cut” technology patent).
Headquartered in Tolland, Connecticut, Gerber Scientific operates through three primary businesses: Gerber Scientific Products, Spandex, and Gerber Technology.