HGGC, LLC, has now completed its purchase of Woburn, MA’s Monotype Imaging Holdings, Inc. Monotype was a publicly traded firm and had all of its outstanding shares purchased for $19.85 each. The total value of the deal is $825 million.
Both CEO’s Discuss This Transaction
Monotype President and Chief Executive Officer Scott Landers said he was pleased this transaction has been completed. His company can continue building their strategy and engaging customers. He appreciates the operational insight and industry knowledge that his new parent company offers to his team. His company can now offer customers an improved experience and more value.
HGGC Co-Founder and CEO Rich Lawson said that the closing of this transaction marks a milestone for Monotype. It can now embark on an exciting new chapter and is perfectly positioned for success. He called the font industry an evolving and demanding one and looked forward to helping Monotype effectively compete.
HGGC and Monotype first came to an agreement for the acquisition on July 25, 2019. The deal was approved by shareholders of Monotype on October 9, 2019. Monotype’s stock was trading on the NASDAQ but was delisted when the market closed on October 10, 2019.
Goodwin Procter LLP was Monotype’s legal counsel and their financial advisor was J.P. Morgan. HGGC’s legal counsel was Kirkland & Ellis LLP and its financial advisor was Deutsche Bank Securities Inc.
Monotype fonts are used by thousands of brands around the world. It has 710 employees and generated $246.7 million in revenue in 2018. It earned $12.3 million in profit that year.
HGGC is based in Palo Alto, California, It is a private equity investment firm that was formed in 2007 by Richard Lawson, Gregory Benson, Steve Young, and Bob Gay. It invests in mid-sized companies in the private equity and late stage venture investment stages.
HGGC has invested more than $4.3 billion in companies in its portfolio. These companies collectively have over 60,000 employees. It is a privately held firm.