Private equity firm Rizvi Traverse Management LLC is taking 3D movie technology maker RealD Inc. (NYSE: RLD) private for about $551 million in cash, valuing the target at $11 per share. RealD’s stock closed at $10.57 on Nov. 6.
RealD, founded in 2003, makes technology that is mostly used to show 3D movies including Jurassic World and The Martian. The target said the sale to Rizvi was part of a strategic review process and comes almost a year after activist investor Starboard Value offered to buy RealD for about $540 million.
“As a private company, RealD will have the flexibility and resources to further invest in our continued cinema leadership and visual technology innovation,” says RealD CEO Michael Lewis, who is reinvesting his shares in the acquisition and will continue to lead the company.
Rizvi Traverse is a media, technology and entertainment focused private equity firm. Some of the firm’s current investments include Twitter Inc. (NYSE: TWTR), Snapchat, Playboy and Elon Musk's SpaceX. Rizvi has also previously invested in Facebook Inc. (Nasdaq: FB) and ICM.
Moelis & Co. (NYSE: MC), Wachtell Lipton Rosen & Katz and Cooley LLP are advising RealD. Freshfields Bruckhaus Deringer US LLP is advising Michael Lewis. Latham & Watkins LLP is representing Rizvi Traverse.