Sept 1 (Reuters) – Action camera maker GoPro said on Tuesday it is being acquired by Starman Optical in an all-cash deal valued at $285 million.
Under the terms of the deal, GoPro shareholders will receive an aggregate cash payment of about $1.14 per share, while retaining roughly 10% ownership of the combined company.
GoPro, which went public in 2014 with an IPO price of $24 per share and briefly achieved a valuation of nearly $4 billion on its first day of trading, has struggled in recent years to reignite growth beyond its action-camera business.
The deal represents a premium of 29.5% to the stock’s last close.
GoPro’s about $92 million of outstanding debt will be repaid in full when the deal closes, leaving the merged entity with a substantially debt-free balance sheet.
Starman Optical designs and builds devices that turn computer data into light signals, sending information at fast speeds through fiber-optic cables. Demand for such devices has grown in the multibillion-dollar AI infrastructure buildout.
GoPro had previously said it was reviewing options that could include a sale or merger after hiring consulting firm Oliver Wyman to identify opportunities beyond its core action-camera business.
The company said it will continue to fully support its existing consumer products and its subscription and cloud platform.
(Reporting by Prathik Jayaprakash in Bengaluru; Editing by Devika Syamnath)
