SMART Modular Technologies Inc. (SMOD) to Go Private in $645M Acquisition Deal

QualityStocks would like to highlight SMART Modular Technologies (NASDAQ: SMOD), a leading independent designer, manufacturer, and supplier of value added subsystems to original equipment manufacturers (OEMs). Subsystem products include memory modules and solid state storage products which offered to customers worldwide.

In the company’s news yesterday,

SMART Modular Technologies announced it will be acquired by Silver Lake Partners and Silver Lake Sumeru for $9.25 per share in cash in a deal valued at approximately $645 million. The offer price represents a 23 percent premium over the average closing price for the previous 30 trading days and a 46 percent premium over the average closing price for the previous 52-week period.

“After thoroughly evaluating a full range of strategic alternatives, the Special Committee of the SMART Board concluded that this transaction is fair to and in the best interests of the company’s shareholders,” Kimberly Alexy, chair of the Special Committee stated in the press release. “The Special Committee unanimously recommended this transaction to the SMART Board, which approved the transaction based on the Special Committee’s recommendation.”

Iain MacKenzie, president and CEO of Smart Modular, said a private position will enable the company to execute its business goals and expand business.

“As a private company, we believe we will have greater flexibility to deliver to our customers the benefits of our long-term strategies, while managing the volatility of the DRAM cycles that have and will continue to be part of our business model,” MacKenzie stated in the press release. “As a partner with strong technology expertise, Silver Lake will be committed to supporting our ability to grow our business around the world and provide long-term opportunities for our employees, customers and broader industry.”

Silver Lake Partners noted its approval of Smart Modular’s performance in the past, and said the firm’s experience will boost Smart Modular’s operations and position in the industry.

“SMART has a significant history of success. We are very pleased to have an opportunity to work with SMART’s management team to develop this business going forward in existing and new directions,” Ken Hao, a managing director of Silver Lake Partners stated. “We expect to maintain continuity in SMART’s business approach and strategies, customer service and support and employee base. Silver Lake, the global leader in private investments in technology and technology-enabled industries, has a strong track record of assisting management teams to develop their business plans to their fullest potential.”

Shares of Smart Modular soared more than 12 percent to $9.20 on today’s acquisition news.

The acquisition is expected to be completed in the third calendar quarter of 2011.

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Forward-Looking Statement:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.