ADESA acquired by private equity firms
ADESA, Inc. has entered into a definitive merger agreement to be acquired by a group of private equity funds consisting of Kelso & Company, GS Capital Partners, an affiliate of Goldman Sachs, ValueAct Capital and Parthenon Capital.
Under the merger agreement, each outstanding share of ADESA common stock will be converted into the right to receive $27.85 per share in cash, representing a premium of approximately 10% to ADESA's closing share price of $25.40 on December 21, 2006 and approximately 37% to ADESA's closing share price of $20.31 on July 26, 2006, the date the Board of Directors authorized the initiation of this process. The Board has approved the definitive agreement and has resolved to recommend that ADESA's stockholders adopt the agreement.
Insurance Auto Auctions, Inc. (IAAI) will be combined with ADESA. IAAI is owned by Kelso & Company, Parthenon Capital and certain members of its senior management team.
The total transaction value is approximately $3.7 billion.