ARC Document Solutions (ARC) said Wednesday that it has signed a definitive agreement to merge with and into a wholly owned unit of TechPrint Holdings, which is an affiliate of certain ARC executives.

Each outstanding ARC share will be converted into the right to receive $3.40 in cash per share, representing a premium of almost 29% to the closing price of its stock on the last trading day before Chief Executive Kumarakulasingam Suriyakumar publicly announced his offer to acquire ARC, the company said.

ARC said Suriyakumar made a preliminary nonbinding proposal to acquire the company in April. ARC announced its receipt of the proposal in early July.

The transaction has received approval from ARC's board but is still subject to shareholders' approval and other customary closing conditions. The company's stock will be delisted from the New York Stock Exchange upon completion of the deal, which is expected before 2024 ends, ARC said.

TechPrint Holdings is an affiliate of ARC's Suriyakumar, President and Chief Operating Officer Dilantha Wijesuriya, Chief Financial Officer Jorge Avalos, and Chief Technology Officer Rahul Roy. This buyer group, which also includes a private investor and certain entities, collectively owns almost a 20% stake in ARC, the company said.

Shares of ARC were up 8.1% in recent trading.

Price: 3.34, Change: +0.25, Percent Change: +8.09