Blue Nile Inc (NASDAQ:NILE) stock was soaring on Monday following news that the jewelry company will go private.
Blue Nile Inc is working on a deal with a group of investors that will take it private. This group is made up of funds managed by Bain Capital Private Equity and Bow Street LLC. The company’s Board of Directors have unanimously approved the deal and are advising shareholders to do the same.
The deal to take Blue Nile Inc private will have the group of investors acquiring all outstanding NILE shares for $500 million. This will have it paying $40.75 in cash for each share. This represents a 34% premium over NILE’s closing price on Nov. 4, 2016.
The Blue Nile Inc deal is subject to customary closing conditions before it can be completed. There is also a 30-day period in which the company can consider alternative offers. That period starts today.
Blue Nile is a unique business with a strong platform in an industry that is rapidly evolving and migrating online,” Howard Shainker, Managing Partner at Bow Street, said in a statement. “We are excited to work alongside Blue Nile management and Bain Capital to execute on the Company’s strategy.”
Blue Nile Inc is receiving financial advice for the deal from BofA Merrill Lynch. It’s legal advisor is Wilson Sonsini Goodrich & Rosati. The group of investors is getting legal advice from Kirkland & Ellis LLP. Goldman Sachs & Co is providing debt for the deal.
Blue Nile Inc is expecting the deal to go private to be completed in the first quarter of 2017.
NILE stock was up 34% as of Monday morning.
