agreed to be acquired by privately owned online sports merchandiser Fanatics Inc. in a deal that values the sports retailer at roughly $156 million.
Fanatics is offering Dreams shareholders $3.45 a share under the agreement, a 32% premium to the stock’s Friday closing price and above a 52-week high of $3.04 hit last month.
Shares surged 45% to $3.79 in premarket trade, topping the offer price.
The companies pegged the value of the deal at roughly $183 million, which includes roughly $25 million of Dreams’ outstanding debt.
The company’s chief executive, chairman and other shareholders that together own roughly 35% of Dreams’ outstanding shares have agreed to vote in favor of the deal.
“This combination will enhance Dreams’ ability to achieve its goals, while realizing a significant and immediate all-cash premium for our shareholders,” said Chief Executive Ross Tannenbaum.
The transaction, subject to shareholder and regulatory approvals, is expected to close in the third quarter.
The company has been putting a heavy focus on its e-commerce business, reporting last month that growth in the business drove a 24% increase in fourth-quarter revenue. Profit for the period was up 26% at $5.2 million.
View more information: https://www.marketwatch.com/story/dreams-inc-to-be-acquired-by-fanatics-inc-2012-04-16