Francisco binding offer for Grass Valley
Francisco Partners, a California-based private equity firm focused on investments in technology-based companies, has made a binding offer to Technicolor for the acquisition of the Grass Valley Broadcast & Professional business activities.
With nearly $5 billion of capital under management, Francisco Partners is one of the world’s largest technology-focused private equity funds. The firm was founded to pursue structured investments in technology and technology-based companies with a strong foundation and secure market position.
The binding offer from Francisco Partners is for 100 per cent ownership of the current Grass Valley Broadcast & Professional business, which would operate as ‘Grass Valley’ going forward. The offer values the Broadcast business at $100 million. The transaction is expected to close before the end of 2010, subject to the relevant customary regulatory administrative approvals and consultations.
"This binding offer is a key step in the largest of the disposals we decided to make as part of the strategic refocus of our activity portfolio. This will clarify and solidify our financial profile. This is also positive news for Grass Valley Broadcast employees and customers who will benefit from the engagement of a new shareholder recognized as a leader in technology-based businesses," said Stephane Rougeot, Chief Financial Officer of Technicolor.
"This is positive news for the company and our customers," said Jeff Rosica, Senior Vice President and head of the Grass Valley Broadcast & Professional business. "We are encouraged that we are taking a major step towards completing the divestiture process with this binding offer from Francisco Partners. The opportunity to be part of Francisco Partner’s portfolio gives Grass Valley a solid foundation to continue to work tirelessly to maintain our core values of innovation, performance, and passion that have benefited our customers throughout the years. Our customers worldwide will continue to receive the high quality and service that they have come to expect from Grass Valley, with continued focus on raising the bar in our industry."
The Transmission and Headend businesses, which are in the process of being separated from the Grass Valley Broadcast & Professional business, are not included in the offer received. Technicolor will continue the planned divestiture of these businesses separately. These businesses plan to individually operate going forward.