Seattle-based online diamond jeweler Blue Nile is being acquired for about $500 million in cash by a private investor group that includes Bain Capital Private Equity and Bow Street LLC. The move comes amicably and will provide substantial value to Blue Nile’s stockholders, translating to $40.75 in cash per share and representing a premium of approximately 34 percent over Blue Nile’s closing price last Friday.
Blue Nile’s Board of Directors unanimously approved the deal and recommended that stockholders vote their shares in favor of the transaction. Closing of the deal is subject to customary closing conditions, however there are no financing conditions associated with the proposed acquisition, expected to close in the first calendar quarter of 2017.
Under the terms of the merger agreement, Blue Nile may solicit alternative acquisition proposals from third parties during a 30-day “go-shop” period, following the date of execution of the merger agreement.
“Since its inception, Blue Nile’s guiding principle has been to provide value to its customers, suppliers, and shareholders, and this transaction provides tremendous value to all,” said Blue Nile Chairman, CEO and President Harvey Kanter, in a company statement. “Blue Nile will continue its innovative drive that has disrupted the diamond industry and made us the smartest, easiest, and most pressure-free way for consumers to buy a diamond.”
Blue Nile’s third quarter of 2016 financials showed net revenues were $105.1 million and net income totaled $1.3 million, or $0.11 per diluted share.