NEW YORK (TheStreet) -- SciQuest (SQI) stock is advancing 32.63% to $17.60 on heavy trading volume on Tuesday morning after the cloud-based business automation solutions provider agreed to be acquired by private-equity firm Accel-KKR in a $509 million transaction.
Accel-KKR will pay $17.75 per share in cash to take the Morrisville, NC-based company private. The offer is 34% more than SciQuest's stock closing price on Friday.
Accel-KKR currently owns a 4.9% stake in SciQuest and has been an investor since 2014.
"As a private company, we expect to continue to accelerate innovation, increase efficiency and expand our solution suite," SciQuest CEO Stephen Wiehe.
SciQuest's board unanimously approved the transaction, which is pending shareholder and regulatory approval. The deal is expected to close in the third quarter of 2016.
So far today, 3.29 million shares of SciQuest have been traded, significantly higher than its average daily volume of 92,928 shares.
Separately, SciQuest has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's impressive record of earnings per share growth, compelling growth in net income and revenue growth, which offsets generally disappointing stock performance and weak operating cash flow.
You can view the full analysis from the report here: SQI
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.