Innotrac Corporation has entered into an agreement with Sterling Partners providing for the acquisition of all of the outstanding shares of Innotrac for $8.20 per share in cash or $108.6 million. The agreement to acquire Innotrac contains no financing contingencies. The transaction is expected to close in the first quarter of 2014.
Innotrac Corporation (NASDAQ: INOC) provides technology-based marketing support and distribution services to large corporations that outsource these functions. The company offers consultative services, technology services, distribution services, and end user customer support services. The company is headquartered in Atlanta (www.innotrac.com).
Scott Dorfman, the company’s CEO, Chairman and largest shareholder with 44% of the company’s outstanding common stock, and other members of the company’s management team will continue with the company and will retain a significant equity position after the transaction is closed.
“This transaction will deliver to Innotrac’s shareholders a substantial cash premium, certainty of value and immediate liquidity. We believe that Sterling will be a strong strategic partner to help us continue to service our customers with the best-of-breed services they have become accustomed to,” said Mr. Dorfman.
Sterling Partners focuses on investing growth capital in small and mid-market companies in industries with positive, long-term trends, including education, healthcare, and business services. Sterling manages over $5 billion in institutional capital. The firm was founded in 1983 and has offices in Chicago, Baltimore, and Miami (www.sterlingpartners.com).
Harris Williams & Co. is acting as the exclusive financial advisor to the special committee of the board of Innotrac and provided a fairness opinion to the special committee. Kilpatrick Townsend & Stockton is acting as legal counsel to the special committee. Katten Muchin Rosenman is acting as legal counsel to Sterling Partners.
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-15-13