Gerber Scientific Inc ( NYSE: GRB ) announced a definitive merger agreement with Vector Capital Corporation at $11 per share. Below is the detailed news.

Gerber Scientific Inc. and Vector Capital Corporation (Vector) announced that they have entered into a definitive merger agreement under which funds affiliated with Vector will acquire the Company. Under the terms of the merger agreement, the shareholders of the Company will receive $11.00 per share in cash, or approximately $281.8 million in total. In addition to the cash payment, each shareholder of the Company will receive for each share they own a non-transferable right to receive contingent cash payments at future times, if recoveries are made pursuant to certain litigation claims in respect of U.S. Patent 5,537,135 (a computerized print to cut technology patent). After a thorough assessment, the Board of Directors of the Company (Board) unanimously adopted the merger agreement. The merger agreement permits the Board to solicit, receive, evaluate and enter into negotiations with respect to alternative proposals through July 25, 2011. The Board, with the assistance of its advisors, will actively solicit alternative proposals during this period. There can be no assurance that this process will result in a superior offer. If there is no superior offer, the transaction is expected to close in the second half of calendar 2011. Vector has secured committed debt financing from Fortress Credit Corporation. RA Capital Advisors is acting as financial advisor and Cravath, Swaine & Moore LLP is acting as legal advisor to the Board.

( Source: Reuters )