SoundThinking to Be Acquired by Transom Capital Group
SSTI is trading near its 52-week low of $5.415 (3.0% above the low) on light trading volume (0.4× avg).
Summary
SoundThinking has agreed to be acquired by Transom Capital Group for $8.00 per share in cash plus one non-transferable contingent value right for up to an additional $3.00 per share. The upfront cash consideration represents a 46% premium to the closing price on September 28. Holders owning about 33% of outstanding common stock have already agreed to tender their shares. Total enterprise value with payment of the maximum CVR payment is about $159 million. The deal comes after a difficult period for the company, which recently cut full-year revenue guidance and reported an 8% revenue decline and $11.8 million net loss in its latest quarter. The acquisition provides an exit for shareholders at a time when the stock is trading near its 52-week low. Investors should watch for the definitive agreement and any regulatory approvals.
At the time of this announcement, SSTI was trading at $5.58 on NASDAQ in the Technology sector, with a market capitalization of approximately $72M. The 52-week trading range was $5.42 to $12.25. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.