ARC logo
ARC Document Solutions, which rolled up dozens of independent reprographics companies in the 1990s, has been a publicly held company since 2005. That may be about to change.
According to a release posted on July 2 on ARC’s investor web page, the company received an offer in April from an acquisition group – consisting of CEO Kumarakulasingam Suriyakumar, COO Dilantha Wijesuriya, CFO Jorge Avalos, CTO Rahul Roy, a private investor named Sujeewa Sean Pathiratne, and others – to acquire all outstanding shares of ARC not currently owned by the group.
The group proposes a purchase price of $3.25 per share in cash. ARC currently has about 43 million shares outstanding, so the offer pegs the value of the company at about $140 million. The stock price on July 18 was $3.09 per share, so the group’s offer represents a premium of about 5 percent over current value.
The release further states, “In response to the proposal, on April 8, 2024, a special committee of the board of directors of the Company consisting entirely of independent, disinterested directors (the Special Committee) was formed to review and evaluate the Proposed Transaction….The Special Committee intends to carefully consider the Proposed Transaction with the assistance of its independent financial and legal advisors. No assurances can be given regarding the terms and details of any transaction, that any proposal made by the Acquisition Group regarding a proposed transaction will be accepted by the Special Committee, that definitive documentation relating to any such transaction will be executed, or that a transaction will be consummated in accordance with that documentation, if at all.”