NEW YORK (TheStreet) -- Shares of Higher One (ONE) are spiking 36.13% to $5.11 on heavy trading volume Thursday afternoon after the company agreed to be bought by an affiliate of Blackboard, an education technology company.
Blackboard will pay $5.15 per share in cash for the New Haven, CT-based payments technology provider for higher education.
The deal represents a 37.3% premium over Higher One's shares closing price on June 29 and has an equity value of $260 million.
"After contacting approximately 60 potential bidders and multiple rounds of competitive bidding and negotiations, Higher One is confident the substantial all-cash premium offered by this transaction maximizes shareholder value and is in the best interest of our shareholders, customers and employees," Higher One Chairman Paul Biddelman said in a statement.
The company first announced a strategic review process in December 2015.
Higher One said the acquisition will allow for further integration of its CASHNet platform with the Blackboard Transact business line.
The company's CASHNet Payment platform includes electronic billing and tuition payment plans.
About 7.52 million of Higher One's shares changed hands so far this afternoon compared to its average 30-day volume of 282,765 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
Recently, 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 articles's author.
You can view the full analysis from the report here: ONE