NEW YORK (TheStreet) -- Shares of WCI Communities (WCIC) were soaring 37.53% to $23.60 on heavy trading volume early Thursday morning after agreeing to be purchased by rival homebuilder Lennar (LEN) in a cash and stock deal worth $643 million.
Lennar's offer of $23.50 per share represents a 37% premium to WCI's Wednesday closing price. The offer will be $11.75 in cash and $11.75 of Lennar stock.
The transaction has an enterprise value of $809 million, according to a company statement.
WCI now has 35 days to shop for a better offer.
About 1.72 million shares have been traded so far today, well above its average trading volume of roughly 307,784 shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
WCI Communities' strengths such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and notable return on equity outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: WCIC
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.