Creo Inc., in the news recently because of a dissident shareholder action and proxy battle, has agreed to be acquired by Eastman Kodak Company. Kodak will acquire all of the issued and outstanding common shares of Creo (estimated to be about 59.4 million shares) for $16.50 per share in cash. The deal is worth about $980 million.

This is the result of a process begun by a special committee of independent directors, established at Creo’s July 2004 board of directors meeting. The committee was tasked with reviewing strategic alternatives with the objective of enhancing shareholder value. Merrill Lynch was retained to assist with the evaluation of the company’s business plan and careful consideration of a number of strategic options that included acquisitions, alliances with strategic partners, resale arrangements, business combinations, and the sale of all or a portion of the company’s assets.

“This transaction represents the culmination of an extensive process. The special committee of independent directors of Creo and its financial advisors canvassed all available options to maximize value for Creo shareholders,” said Ken Spencer, a member of the Creo board of directors and chair of the special committee. “We are pleased that Creo's success has been recognized by one of the world's leading imaging companies.”