Pomeroy IT agrees to be bought by Platinum Equity

Pomeroy IT agrees to be acquired by Platinum Equity for $6.50 a share

• On 6:00 pm EDT, Friday September 25, 2009

HEBRON, Ky. (AP) -- Pomeroy IT Solutions Inc. said Friday it has entered into an agreement to be acquired by affiliates of private equity Platinum Equity LLC.

Under the terms of the deal, Platinum will acquire all outstanding shares of Pomeroy for $6.50 per share, or $60.6 million based on 9.32 million shares outstanding.

The company also said it terminated its previous merger agreement with Hebron LLC, Desert Mountain Acquisition Co. and founder David Pomeroy. The company paid a termination fee of roughly $1 million to Hebron. In May, Pomeroy had agreed to be acquired by Hebron, a holding company owned by Mr. Pomeroy, for $5.02 a share.

The deal is expected to close in the fourth quarter.

Houlihan Lokey is serving as the exclusive financial adviser to the special committee on the company's board. Sheppard, Mullin, Richter & Hampton LLP is serving as legal adviser.

Shares of Pomeroy gained 46 cents, or 8 percent, to $6.30 in after-hours trading following an announcement of the acquisition agreement. In the regular session, the stock fell 6 cents to close at $5.84.