Filing Flows › Universal Display (OLED) › Takeover & LBO
Is Universal Display (OLED) a takeover target?
A leveraged buyout at today's price plus 30% ($101.34 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. Historically 4.0% of companies with its figures were bought within a year (0.79× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $101.34 | today's $77.95 plus 30% |
| × shares | 45.8 million | |
| = Equity value | $4.6B | |
| + Debt refinanced | $0 | |
| − Cash | $471M | |
| = Enterprise value | $4.2B | 16.8× EBITDA of $248M |
| Fees | $83.4M | 2% of the price |
| New debt | $1.4B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $2.9B | 68% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $616M | $243M | $104M | $73.1M | $1.3B |
| Year 2 | $611M | $241M | $98.6M | $76.4M | $1.2B |
| Year 3 | $615M | $243M | $92.8M | $81.5M | $1.1B |
| Year 4 | $626M | $247M | $86.5M | $88.3M | $1.0B |
| Year 5 | $644M | $254M | $79.8M | $97.5M | $945M |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 12.5× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $3.2B | |
| − Debt left | $945M | |
| = Buyer's equity | $2.2B | |
| Money multiple | 0.77× | on $2.9B put in |
| Buyer's yearly return (IRR) | −5.0% |
Price against return
What the buyer makes at other premiums over today's $77.95.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $85.75 | 0.7% |
| 20% | $93.54 | −2.4% |
| 30% | $101.34 | −5.0% |
| 40% | $109.13 | −7.2% |
| 50% | $116.93 | −9.2% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $628M | |
| EBITDA, last 12 months | $248M | 39.5% of revenue |
| Depreciation and amortization | $30.4M | |
| Capital spending | $42.2M | |
| Debt | $0 | |
| Cash | $471M | |
| Share price | $77.95 | on Oct 16, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -1.9% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 22% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Universal Display would cost about $101.34 a share, $4.6B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 12% | $87.30 | $4.0B |
| Median | 30% | $101.34 | $4.6B |
| High end (a quarter paid more) | 31% | $102.11 | $4.7B |
The odds, from history
Historically 4.0% of companies with its figures were bought within a year (0.79× the average). Its figures put it in decile 4 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Universal Display's latest quarter
Universal Display, Q3 2026: revenue $160M (+15% year over year), operating margin 33.5%, net earnings $78.9M, operating cash flow $100M. The chart follows the revenue to costs, profit and cash.
Questions
Is Universal Display being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Universal Display?
A leveraged buyout at today's price plus 30% ($101.34 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Universal Display cost?
Takeovers in its sector paid a median premium of 30% over the share price before the deal (the middle half 12% to 31%), according to the 14 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Universal Display would cost about $101.34 a share, $4.6B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.