Shares of Cision, owner of PR Newswire, shot up 17.81% to $9.95 after the Chicago-based company announced plans to be bought by Platinum and go private.
An affiliate of Platinum will buy up all outstanding shares of Cision for $10 a share, which represents a 34% premium over the company's 60-day volume-weighted price average, Cision said in a press release.
Cision will also be free to consider or seek alternative buyout proposals during a "go-shop" period that will last until Nov, 12. However, Platinum will have the right to match a richer offer and collect a termination fee if its bid is rejected in favor of another.
The two companies hope to officially close their deal in the first quarter of 2020, after receiving the necessary government anti-trust approvals.
"This transaction will provide shareholders with immediate and substantial cash value, while also providing us with a partner that shares in our commitment to customers and employees and can add strategic and operational value," said Kevin Akeroyd, Cision's CEO, in a press statement.
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