R
ealD Inc., a provider of 3D film technology, announced on Monday that it is being bought by a private equity firm for $551 million in cash, or $11 a share.
The buyer is Rizvi Traverse Management, LLC, a private equity investor in the media, entertainment and technology sectors.
“Upon completion of the transaction, RealD will become a privately held company. The RealD Board of Directors approved the agreement and recommends that RealD shareholders vote in favor of the transaction,” according to a RealD statement.
RealD shareholders will receive $11 in cash for each share of RealD’s common stock, reflecting a premium of about 19 percent to RealD’s closing stock price on Oct. 1, 2014, according to the company.
Frank J. Biondi J., RealD’s lead independent director, said the deal “provides immediate and substantial cash value to RealD shareholders at a significant premium to the company’s unaffected share price.”
RealD says it controls the world’s most widely used 3D technology, and its “extensive intellectual property portfolio” is used in applications and products that improve the viewing experience in theaters, at home and elsewhere. The company was founded in 2003 and has offices in Beverly Hills, Boulder, London, Moscow, Shanghai, Hong Kong and Tokyo.
Rizvi Traverse Management has investments in media, entertainment and tech companies, including Twitter, Playboy, Snapchat, SpaceX, Square and Vessel. Its previous investments include ICM, Summit Entertainment and Facebook.
