Epiq Systems To Be Acquired By Omers Private Equity In Deal Worth $1 Bln

(RTTNews) - Epiq Systems, Inc. (EPIQ) Wednesday announced a definitive agreement to be acquired by OMERS Private Equity, the private equity arm of the OMERS pension plan, and funds managed by Harvest Partners, LP. As per the agreement, Epiq shareholders will receive $16.50 in cash for each share of its common stock. The offer has a total potential value of approximately $1.0 billion including assumed debt obligations.

The transaction represents a 42 percent premium to Epiq's unaffected closing share price of $11.63 as of February 19. Upon completion of the transaction, Epiq will become a privately-held company and will be combined with DTI, a leading global legal process outsourcing company majority-owned by OMERS and managed by OMERS Private Equity.

The Epiq board of directors unanimously approved the transaction and recommends Epiq shareholders to vote in favor of the transaction.

The proposed transaction is expected to close in the fourth quarter of 2016. The transaction requires the affirmative vote of the holders of at least two-thirds of the outstanding shares of Epiq's common stock entitled to vote on the transaction, which will be sought at a special meeting of Epiq's shareholders. The company now have voting support agreements, representing approximately 38 percent of the total issued and outstanding shares of common stock.

Credit Suisse Securities (USA) LLC is serving as exclusive financial advisor to Epiq Systems and Kirkland & Ellis LLP is serving as legal counsel. Wells Fargo Securities is serving as exclusive financial advisor to DTI, and Weil, Gotshal & Manges LLP and Bryan Cave LLP are serving as legal counsel.