PhotoChannel Networks Inc. recently announced that it has reached an agreement with the board of directors of Pixology PLC on a recommended all cash offer by PhotoChannel Networks for all of the issued and to be issued shares of Pixology. Pixology currently has 20,273,840 ordinary shares issued and outstanding.
Commenting on the offer, Peter Fitzgerald, Chairman, President and CEO of PhotoChannel Networks, said, “The Board of PhotoChannel Networks is delighted to be making this recommended Offer to the Pixology Shareholders. PhotoChannel Networks has for some time regarded Pixology as an attractive business offering entry into the fast-growing UK and European digital photography markets as well as complementary in-store kiosk technology, important new customers and, through the combination of PhotoChannel Networks and Pixology, critical mass. The PhotoChannel Networks Directors believe that the combined entity will be able to offer customers the most comprehensive in-store kiosk and on line Internet software for digital imaging services available internationally.”
The PhotoChannel offer is said to be for 40.0 pence per Pixology share (approximately Cdn$0.90 per Pixology share). The Offer values the existing issued share capital of Pixology at approximately Pounds Sterling 8.1 million (approximately Cdn$18,225,000). The Offer Price represents a premium of approximately 55.3 per cent to the closing price of 25.75 pence per Pixology Share.