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CDI Corp. to be Acquired by AE Industrial Partners for $8.25 Per Share in Cash

"After a review of strategic alternatives by our Board of Directors, we are pleased to reach this agreement with AEI, which provides our shareholders with immediate liquidity and substantial certainty of value. We further believe that this transaction presents a winning proposition for all of our stakeholders," said Michael S. Castleman, President, Interim CEO and Chief Financial Officer of CDI. "AEI has a proven track record of partnering with company management, is a strategic-minded and growth-oriented investor that has substantial experience in many of our core end markets, and has a strong understanding of the Company's capabilities and business model. With AEI's longer-term commitment, strategic vision, deep capital base, and relevant investing and operating experience, we believe that CDI will strengthen its market position and its delivery of value-added engineering, IT and staffing solutions."

"We are excited to partner with CDI's exceptional leadership team and market-leading brand," said Michael Greene, Managing Partner of AEI. "We believe that the Company's capabilities and reputation, combined with AEI's deep operating expertise in engineering, IT solutions, and human capital management, will allow the Company to expand and strengthen its relationships and its value proposition to key customers. We look forward to working with the Company and accelerating the growth of the business."

Under the terms of the agreement, AEI will commence a tender offer to purchase any and all of the outstanding shares of CDI's common stock for $8.25 per share in cash. The purchase price represents a 33% premium to the closing price of $6.20 on July 28th and a 36% premium to the average closing price for the last 30 trading days of $6.06. Upon completion of the transaction, CDI will become a privately held company.

The transaction, which is expected to close in the third quarter of 2017, is conditioned upon, among other things, satisfaction of a minimum tender condition, regulatory filings, and other customary closing conditions. There are no financing conditions associated with the proposed agreement.

Houlihan Lokey is serving as financial advisor to the Company and Dechert...


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