Innotrac, a Johns Creek-based company that provides product and order-fulfillment services to corporate customers, said it will be acquired by a private equity firm for about $106.6 million in cash.
After the deal with Sterling Partners closes, which is expected in the first quarter of 2014, Innotrac will become a privately held company. The company’s stock is now traded on Nasdaq.
Chairman and Chief Executive Officer Scott Dorfman, the company’s largest shareholder with a 44 percent stake, said the deal will give the company immediate liquidity with no financing involved.
Dorfman and other members of management will remain at the company and retain a significant equity position after the transaction is closed, the company said.
Innotrac was founded in 1984 as a video catalogue company but has grown into a global provider of order-fulfillment and contact-center services and technology. The company has eight fulfillment and distribution centers around the country, including fulfillment operations in Lawrenceville. Other operations are in Europe.
Innotrac said it has been negotiating with Sterling since late October. The company said it could still entertain an offer from a third party, but would have to give Sterling a chance to match any new offer. Innotrac would face a termination fee if it breaks its deal with Sterling.
In Nasdaq trading Monday, Innotrac traded at $8.16, down 1 cent.
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