Epiq Systems agrees to $1 billion acquisition offer

Legal software and technology company Epiq Systems, Inc., has agreed to be acquired for $16.50 per share by OMERS Private Equity and Harvest Partners, Kansas City, Kan.-based Epiq announced Wednesday.

The deal, which is valued at about $1 billion including debt obligations, brings Epiq under the same ownership as one of its chief rivals, Atlanta-based legal process outsourcing company DTI.

Canadian pension plan OMERS is the majority owner of DTI. OMERS Private Equity, the pension plan’s private equity arm, manages the Atlanta company.

The offer of $16.50 per share represents a 42 percent premium over Epiq’s closing price of $11.63 on Feb. 19, before media reports surfaced about a potential deal.

Epiq’s board of directors voted unanimously in favor of the deal and recommends shareholders approve the transaction. The deal requires approval from two-thirds of Epiq ownership. The company’s two largest shareholders, representing about 38 percent of its outstanding shares, have signed agreements supporting the transaction.

If all conditions are met, the transaction would close in the fourth quarter of 2016.

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