Monotype Received $825 Million Buyout Offer. Now What?
Monotype Imaging Holdings (NASDAQ: TYPE) owns a library of typeface fonts that it licenses to designers and software companies. In late July, the company announced an agreement to be acquired by private equity firm HGGC for $825 million, or $19.85 per share, in cash.
The announcement came after rumors circulated earlier this year of a buyout. Also, a process to sell the company last year failed to produce a definitive offer. But now that a buyout has been announced, there's speculation that an even higher offer could emerge, and Monotype's stock has been trading above the current offer price in response.
As a font licensing company, Monotype has found its days of rapid growth are behind it. The company successfully acquired much of its competition to become the largest licensor of typefaces (sometimes referred to as fonts), but it has since failed to find new avenues for growth. That lack of growth has weighed on the company's stock price in recent years:
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