(CNN) — Casper has announced that it is being acquired by Sleepy’s parent company Stein Mart for $6.90 a share in cash.
This represents a 48% premium to Casper’s Thursday closing price of $4.96. Shares of Sleepy’s surged more than 47% on Friday to $13.30 a share.
Casper’s largest shareholder is co-founder and CEO James Simons with 20.3% of the company’s shares, according to 8-K filings. Four other executives of the company own 9.7% each, according to regulatory filings.
Sleepy’s said that the acquisition will bolster its portfolio of brands including Sleepy’s, Grandin Road, True Nordic, Housetouch and Sleepy Goat. The acquisition is expected to close in the fourth quarter.
Casper started out in 2011. Its innovative products include foam mattresses that fit over active bodies, reusable mattress cases, premium pillow shams and cotton duvets.
The company began raising money through a popular crowd-funding campaign in 2014, eventually raising $54 million in total in the round.
The latest deal comes just months after a filing showing that Casper was in talks with fellow mattress startup CasperSleep about a potential acquisition.
Casper said Thursday that it would use the cash from the deal for acquisitions, funding working capital and capital expenditures.
The mattress manufacturer posted an $18.6 million loss on revenue of $98.4 million in the first quarter, compared to a loss of $5.5 million on revenue of $60.8 million a year earlier.
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