received a non-binding proposal from Gregory S. Daily, its chairman and chief executive, to acquire all of the company's shares for $38 each.
The proposal is subject to a number of conditions, including Daily's obtaining financing for the proposed transaction.
IPayment's board established a special committee of four independent directors to act on behalf of the company in evaluating the best decision. The special committee is authorized to retain independent financial, legal and other advisers.
Based in Nashville, Tenn., IPayment provides credit and debit card-based payment processing services to small merchants across the U.S.
Shares of IPayment were much higher on the news, adding $6.41, or 20%, to $37.96. The stock has a 52-week range of $30.41 to $51.50.