Key facts
- GoPro is being acquired by Starman Optical in an all-cash deal valued at $285 million.
- GoPro shareholders will receive approximately $1.14 per share.
- GoPro shareholders will retain approximately 10% ownership of the combined company.
- The acquisition price represents a 29.5% premium to GoPro's last closing stock price.
- GoPro's outstanding debt of approximately $92 million will be repaid at closing.
GoPro, the action camera maker, has agreed to be acquired by Starman Optical in an all-cash transaction valued at $285 million. Under the terms of the deal, GoPro shareholders are set to receive approximately $1.14 per share in cash while retaining about 10% ownership of the merged entity.
The acquisition price reflects a 29.5% premium over GoPro's last closing stock price. The deal also includes the repayment of GoPro's approximately $92 million in outstanding debt upon closing, resulting in a substantially debt-free balance sheet for the combined company.
Starman Optical specializes in designing and manufacturing devices that convert computer data into light signals for high-speed fiber-optic communication, a sector experiencing growth due to AI infrastructure buildout. GoPro, which went public in 2014, has faced challenges in reigniting growth beyond its core action-camera business, prompting it to explore strategic options, including a sale or merger, after hiring consulting firm Oliver Wyman.
GoPro stated that it will continue to fully support its existing consumer products and its subscription and cloud platform.