NEW YORK (TheStreet) -- Pike (PIKE) soared Monday after the energy company agreed to let investment firm Court Square Capital Partners take it private in a deal that values Pike at approximately $383 million.
The agreement, which should close in the second quarter next year, includes a 30-day period in which Pike can look for another offer. Pike's board unanimously supported the bid, which represented a 50% premium to Friday's closing price of $7.96.
The stock was up 48.87% to $11.85 at 10:07 a.m. More than four million shares had changed hands, compared to the average volume of 168,331.
Separately, TheStreet Ratings team rates PIKE CORP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PIKE CORP (PIKE) 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, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: