Boingo Wireless (WIFI) - Get Report jumped on Monday after the mobile internet service provider said it agreed to be acquired by infrastructure investment firm Digital Colony Management for $14 a share cash.
The deal value is about $845 million, including Digital Colony's assumption of about $199 million of Boingo's net debt.
Shares of the Los Angeles company at last check were up 24% at $14.16. The deal price is 23% above Boingo's closing price of $11.40 on Friday.
The deal, subject to conditions including regulatory clearances and a vote of Boingo holders, is expected to close in the second quarter.
The accord "will deliver significant and immediate value to Boingo’s stockholders" and concludes a strategic review Boingo undertook over the past year, Chief Executive Mike Finley said in a statement.
“Digital Colony’s expertise owning and operating digital infrastructure businesses, combined with its relationships, resources and access to long-term, private capital markets, will provide greater flexibility for Boingo to continue advancing its business strategy.”
Launched in 2017 by Digital Bridge and Colony Capital, Digital Colony has more than $30 billion in assets under management.
Boingo, which has about 400 employees, also reported a 2020 net loss of $17.1 million, or 38 cents a share, widened from a loss of $10.3 million, or 23 cents a share, for 2019. Revenue fell 10% to $237.4 million.
The FactSet consensus called for a loss of 38 cents a share and revenue totaling $236.9 million. Boingo said it had canceled its 2020 earnings conference call, which had been scheduled for Monday.