HGGC to Take Monotype Private in $825M Deal, Offering $19.85 Per Share

Private equity firm HGGC has struck a definitive agreement to acquire Monotype Imaging Holdings Inc. at $19.85 per share in an all-cash transaction valued at approximately $825 million. The deal marks a significant milestone for the font and creative software company, representing a 23% premium over Monotype’s closing price on July 25, 2019.

Strategic Shift Drives Valuation

The acquisition reflects Monotype’s successful transformation over recent years. The company has evolved from serving a handful of original equipment manufacturers (OEMs) to serving thousands of brands and millions of creative professionals globally. This strategic repositioning has enhanced the company’s market appeal to institutional investors seeking growth in the creative technology sector.

Pamela Lenehan, Chair of Monotype’s Board, emphasized the significance: “This agreement allows our shareholders to capture immediate value at a meaningful premium, underscoring the substantial value and market standing Monotype has established.”

Unlocking Value as a Private Company

Going private will enable Monotype to pursue a more aggressive growth strategy without the constraints of public market expectations. CEO Scott Landers noted that the transition will provide “financial support and added flexibility to invest in ways that deliver more value and improve the overall experience for our customers.”

The company plans to remain headquartered in Woburn, Massachusetts, maintaining operational continuity while leveraging HGGC’s resources and private equity expertise.

HGGC’s Vision for Growth

HGGC, which manages $4.3 billion in cumulative capital commitments, sees significant upside in Monotype’s intellectual property and design capabilities. Rich Lawson, CEO and Co-Founder at HGGC, highlighted the firm’s confidence: “The Monotype team’s relentless commitment to customers has helped brands realize their full identity. We look forward to advancing their strategy and continuing to deliver products that enable brand expression and differentiation.”

Transaction Timeline and Structure

The transaction is expected to close in the fourth quarter of 2019, subject to customary closing conditions including stockholder approval and antitrust clearances under the Hart-Scott-Rodino Act and German antitrust laws. Notably, there are no financing contingencies backing the deal, ensuring strong certainty of completion.

Monotype’s Board will conduct a 30-day “go-shop” process, actively soliciting alternative acquisition proposals to ensure shareholders receive the best possible consideration.

Market and Operational Implications

Upon closing, Monotype will transition to private ownership, with shares delisting from public markets. The company will discontinue its quarterly dividend through transaction close. Leading financial and legal advisors—including J.P. Morgan, Goodwin Procter, Deutsche Bank Securities, and Kirkland & Ellis—are supporting the transaction.

The deal underscores the growing value institutional investors place on digital creative tools and the enduring demand for sophisticated design and typography solutions in a mobile-first, global landscape.