NEW YORK (TheStreet) -- Ingram Micro (IM) stock is spiking 21.75% to $36.10 on heavy trading volume this morning, after agreeing to be acquired by China's Tianjin Tianhai Investment Co. for roughly $6 billion.
Tianjin Tianhai will purchase Ingram Micro for $38.90 per share in cash. The offer represents a 31.2% premium to Ingram's closing price on Wednesday.
Chinese companies have been acquiring foreign businesses in an effort to combat slowing domestic growth, Reuters reports. During 2015, Chinese firms spent a record $100 billion on foreign acquisitions.
Ingram Micro will become part of HNA Group, Tianjin Tianhai's largest shareholder. Under the terms of the deal, Ingram Micro will suspend its quarterly dividend payment and stock buyback program.
Ingram Micro is a computer, networking and software distributor that distributes products including Apple's (AAPL) iPhones and Cisco's (CSCO) network equipment.
About 12.32 million shares of Ingram Micro have been traded so far today, well above the company's average trading volume of roughly 1.2 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.
Ingram Micro's strengths such as its good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: IM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.