Epiq Systems Agrees to $627 Million Buyout
July 27 2016 - 10:00AM
Dow Jones News
Legal software company Epiq Systems Inc. has agreed to be taken
private in a $627 million buyout deal, ending months of merger
speculation.
In a regulatory filing Wednesday, Epiq said it agreed to be
acquired by private-equity firms OMERS Private Equity and Harvest
Partners LP that values the Kansas City company at $16.50 a share
and represents a 14% premium over Tuesday's closing price. The
price tag is a 45% premium to where the stock was trading before
deal speculation resurfaced earlier this year.
The buyers intend to merge Epiq with DTI, a legal process
outsourcing company that provides services to law firms,
corporations and governments around the world. DTI has been working
to grow its own platform, last summer buying Merrill Corp.'s legal
solutions business.
Epiq's deal follows months of speculation that the company was
shopping for a buyer. In February, media reports indicated that a
sharp drop in the firm's share price was reigniting potential
buyers' interest, about a year and a half after Epiq had said it
was exploring strategic alternatives.
As part of the agreement, Epiq is on the hook to pay a $15
million termination fee should it nix the deal.
Shares in the company, down 14% over the past 12 months, were
inactive premarket.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
July 27, 2016 09:45 ET (13:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Epiq (NASDAQ:EPIQ)
Historical Stock Chart
From May 2024 to Jun 2024
Epiq (NASDAQ:EPIQ)
Historical Stock Chart
From Jun 2023 to Jun 2024