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Micro-Cap Acquired By Global Private Equity Firm
By: AllPennyStocks.com News
October 23, 2009
It is a mark of success that a small company has sufficient allure for big investors that it is to be taken over for a lucrative price. Such was the happy fate this week for Texas-based surveillance firm GVI Security Solutions, Inc. (OTCBB:GVSS), which attracted the attention of GenNx360 Capital Partners, which agreed to turn the company private. GenNx360 is a leading global private equity firm focusing on middle-market opportunities.
GVI, which operates out of the town of Carrollton, is a leading provider of video security surveillance solutions featuring the complete Samsung Electronics line of products, with sales and service representation throughout North, Central and South America, selling to the Homeland Security and Commercial markets, including governments, major retail chains, leading financial institutions and public and private school systems.
The company boasts that its products can be configured to meet the needs of anyone from a small business needing a simple camera to major corporations requiring a complete video security solution consisting of over 10,000 cameras and a full range of industry leading SAMSUNG Electronics products. The solution starts with the DVR recording and command platform with a powerful user interface that enables remote access on demand. A variety of cameras, high resolution displays, power products and accessories complete the system solution.
In September, this aggressive security company announced that it had been selected by a defense contractor to provide Samsung DVR-based video surveillance to the customer’s multiple manufacturing plants in the United States. A few days later, GVI unveiled its new fully automated AutoIP(TM) Open VMS solution that makes IP video management practical for the mid-market. AutoIP automatically detects, configures and records installed network cameras and makes installation simple across a broad range of applications for a variety of businesses.
The deal, announced on October 22, entails GenNx360 purchasing all outstanding shares of GVI’s common stocks at 38 cents a pop, for a total cash outlay of $11.6 million. The deal is expected to commenced by November 4 and expire within 20 business days of that. Stockholders representing approximately 22% of GVI's outstanding shares have entered into tender and support agreements with GenNx360 in connection with the transaction.
However, the legal firm of Stull, Stull & Brody is investigating possible breaches of fiduciary duty and other violations of state law by GVI’s Board of Directors; to wit, the price to be paid to GVI shareholders and the process by which the Board is addressing the transaction.
At the time of the deal, the company’s stock price was listed around 36 cents a share, in the upper half of a 52-week range that crested last November at 47 cents, before crashing to 19 cents in February.
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