NEW YORK (TheStreet) -- Fortegra Financial (FRF) soared to a 52-week high of $9.87 on Tuesday after Tiptree (TIPT) agreed to purchase the company in an all-cash deal that values the insurance service company at approximately $200 million.
Tiptree will pay $10 a share to Fortegra shareholders, which marks a 43% premium to Monday's closing price of $7.02. The companies announced the deal should close in late 2014 or early 2015, unless Fortegra pursues and agrees to another company's offer in the 30-day grace period built into the Tiptree deal.
Fortegra was up 40.46% to $9.86 at 10:16 a.m. More than 1.7 million shares had changed hands, compared to the average volume of 37,742.
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Separately, TheStreet Ratings team rates FORTEGRA FINANCIAL CORP as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FORTEGRA FINANCIAL CORP (FRF) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, attractive valuation levels, growth in earnings per share and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."