(Reuters) - E-commerce services provider Digital River Inc said on Thursday it entered into an agreement to be acquired by an investor group led by Siris Capital Group LLC for about $840 million.
The deal, valued at $26 per share in cash, is at a premium of almost 50 percent of Digital River’s Thursday’s closing price.
The agreement, approved by the board of Minnesota-based Digital River, includes a 45-day “go-shop” period during which the company can solicit alternative proposals, Digital River said on Thursday.
Siris will finance the deal with a combination of equity and debt, for which it has secured financing.
The companies expect the deal to close in the first quarter of 2015.
Morgan Stanley & Co LLC acted as financial adviser to Digital River, while Macquarie Capital (USA) Inc, Union Square Advisors LLC and Evercore Partners Inc are financial advisers to Siris.
Reporting by Kanika Sikka in Bangalore; Editing by Peter Cooney