The parent company of the Chuck. E. Cheese restaurant chain has agreed to be acquired by an Apollo Global Management affiliate for approximately $950 million.
Apollo will pay $54 per share for CEC Entertainment Inc. That's a 12 percent premium to the company's Wednesday closing price of $48.43. The companies put the deal's value at about $1.3 billion, including debt.
CEC may seek out superior proposals from limited third parties until Jan. 29. The company, which announced Thursday that it adopted a shareholder rights plan, had been reviewing its strategic options.
CEC and its franchisees run 577 Chuck. E. Cheese locations in 47 states and 10 foreign countries or territories.
Its board unanimously approved the transaction.