GoPro to Be Acquired by Starman Optical in $285 Million All-Cash Deal

Starman Optical is set to acquire action camera maker GoPro in an all-cash transaction valued at $285 million, the companies announced Tuesday. The deal signals a major shift for GoPro, which has faced challenges in expanding its business beyond its niche market since its public debut.

Deal Structure

Under the terms of the agreement, GoPro shareholders will receive an aggregate cash payment of approximately $1.14 per share. This price represents a 29.5% premium to the stock's last closing price.

Key financial details of the acquisition include:

• GoPro shareholders will retain roughly 10% ownership of the combined company.
• GoPro's outstanding debt of about $92 million will be repaid in full upon the deal's closing.
• The merged entity is expected to have a substantially debt-free balance sheet post-transaction.

Ad

Strategic Context

This acquisition follows a period of strategic review for GoPro. The company had previously hired consulting firm Oliver Wyman to explore options that included a potential sale or merger as it struggled to reignite growth. GoPro went public in 2014 at an IPO price of $24 per share and briefly saw its valuation approach $4 billion, a stark contrast to the current deal's valuation.

The acquirer, Starman Optical, designs and builds devices that convert computer data into light signals for high-speed transmission through fiber-optic cables. The company operates in a sector experiencing high demand, driven by the multibillion-dollar buildout of AI infrastructure. GoPro stated it will continue to fully support its existing consumer products, including its subscription and cloud platforms.