SAN MATEO, Calif. (BRAIN) — GoPro and privately held optical-photonics company Starman Optical Inc. will merge with the action camera brand's approximate $92 million debt being repaid by year's end at closing.
In making the announcement Tuesday morning, GoPro said it will remain a publicly listed company. Shareholders will receive an aggregate cash payment of $285 million ($1.14 per share), subject to potential adjustment based on the company's net working capital at closing, and will maintain ownership of about 10% of the company's outstanding shares.
GoPro said the merger intends to maximize the value of the company's IP and growth potential in consumer, commercial, and defense markets "by recapitalizing the company, strengthening its balance sheet, investing in growth and onshoring the manufacturing of products for strategic markets." GoPro said it will continue to support its existing consumer products and its subscription and cloud platform while investing in growth and "a broader, diversified product roadmap."
GoPro announced in May the struggling company could be sold or merged to maximize value for stockholders. In July, Woodman said he would provide $20 million in financing through the purchase of common stock.
Starman's U.S.-made optical transceivers are expected to be added to GoPro's portfolio, extending its reach into the growing market for AI infrastructure in optical transceivers.
In its August earnings call, GoPro Founder and CEO Nicholas Woodman said his company was close to a decision about its future, the same day the second-quarter results showed revenue declined 31% year-over-year.
