What happened

Shares of Electronics For Imaging (EFII) jumped on Monday after the company announced an agreement to be acquired by an affiliate of Siris Capital Group LLC. As of 12:45 p.m. EDT, the stock was up about 27.2%.

So what

The Siris affiliate has agreed to acquire all outstanding common stock for $37 per share in an all-cash transaction, a 45% premium over the 90-day volume-weighted average price ended on April 12. The deal is valued at approximately $1.7 billion. This comes a few months after the company reported disappointing fourth-quarter results.

A notepad drawing of a fish eating a smaller fish.

Image source: Getty Images.

Electronics For Imaging may solicit alternative proposals during a 45 day "go-shop" period, and it has the right to terminate the agreement if it finds a better offer.

"We believe this transaction delivers superior and immediate value to our shareholders while providing us with a partner that can add strategic and operational expertise to our business," said Electronics For Imaging CEO Bill Muir.

Now what

The Electronics For Imaging board of directors has unanimously approved the deal, and recommends that shareholders follow suit. A special shareholder meeting will be held after the definitive proxy statement is filed with the SEC. Assuming all goes to plan, the company expects to deal to close by the third quarter of 2019.