Vocus Inc. will be bought by the private equity firm GTCR Valor Merger Sub Inc.
The firm will offer $18 per Vocus share, a 48% premium of the stocks close on Friday, April 4. GTCR will also spend $77.3 million to purchase Vocus' Series A convertible preferred stock.
The deal is expected to close in the second quarter of 2014.
TheStreet Ratings team rates VOCUS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VOCUS INC (VOCS) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows: