Sotheby’s sold to billionaire art collector Patrick Drahi for $3.7 billion

Telecom billionaire and art collector Patrick Drahi has emerged as the winning bidder for Sotheby’s, the 275-year-old auction house.

Sotheby’s announced an agreement on Monday to be taken private by Drahi in a deal valued at $3.7 billion including debt.

The takeover will result in Sotheby’s, the world’s oldest and largest international auction house, ending its three decades as a public company, trading on the New York Stock Exchange.

The deal values Sotheby’s at $57 per share, representing a 61% premium to the company’s closing price on Friday. Sotheby’s stock spiked 57% on Monday morning.

After the deal closes, Sotheby’s will be owned by Drahi’s BidFair USA. Drahi, a billionaire entrepreneur and art collector, has built a fortune that Forbes estimates at more than $9 billion.

“Sotheby’s is one of the most elegant and aspirational brands in the world,” Drahi said in a statement, adding that he is a longtime client and admirer of the company.

Sotheby’s was founded in London in 1744 and today it has 80 offices around the world, with its headquarters in New York.

Drahi expressed “full confidence” in Sotheby’s management and said he has no plans to change the company’s strategy. He is the founder and a major shareholder in Altice USA, a New York cable television provider that recently acquired streaming news startup Cheddar for $200 million.

Sotheby’s said that leaving Wall Street will give the company the flexibility to accelerate its recent restructuring program to position the company for long-term success.

“The time is right for Sotheby’s to return to private ownership on a path of growth and success,” Sotheby’s Chairman Domenico De Sole said in a statement.

The deal, which is subject to shareholder approval, is expected to close in the fourth quarter.