Sonic stock was flying high Tuesday on news that Inspire Brands is acquiring the company.
The deal between Sonic (NASDAQ:SONC) and Inspire Brands will have the latter spending $2.30 billion to acquire the fast food chain. It will be doing this by buying up all outstanding shares of Sonic stock.
Inspire Brands will be paying holders of Sonic stock $43.50 per share. It will be using cash to fund this transaction. The price for the stock represents a 19% premium over SONC stock’s closing price on Sept. 24, 3018. It is also a 21% premium to the stock’s 30-day volume-weighted average price.
“This transaction delivers significant, immediate and certain value to Sonic shareholders, and the private ownership structure will provide important benefits to our guests, franchisees and employees,” Cliff Hudson, CEO of Sonic, said in a statement.
Sonic’s deal with Inspire Brands will still need to complete customary closing conditions before it can close. This means it will need approval from regulators and holders of Sonic stock. If this all goes well, the two companies expect the deal to reach completion by the end of the year.
Inspire Brands is a company that owns a growing collection of restaurant brands. The company was formerly Arby’s Restaurant Group, but switched its name earlier this year after acquiring Buffalo Wild Wings. It is also the owner of the Rusty Taco restaurant brand.
SONC stock was up 18% as of Tuesday morning and is up 33% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.