The deal is reportedly worth approximately $1.3 billion, which would value NutriSystem at roughly $47 per share, marking a 30% premium over the company’s share price average over the last five days of trading. The stock is currently trading at around $43.84 per share.
The price of the NutriSystem and Tivity Health deal was revealed by a source who chose to remain anonymous as this information is private. The move will bring NutriSystem into Tivity Health’s weight-loss division, which includes fitness membership program Prime Fitness and its SilverSneakers.
The merger will bring in $38.75 in cash to shareholders, as well as 0.2141 shares of Tivity’s common stock. The move will give Tivity Health a position of about 87% of the combined company, while the rest of the company will be owned by current NutriSystem shareholders.
It is expected that Tivity Health will maintain all NutriSystem brands with the latter company’s CEO Dawn Zier taking over as president and chief operating officer of the former company.
NTRI stock was up about 28.2% on Monday late in the day following the news of the merger, while TVTY shares are moving in the opposite direction on the day, plummeting more than 32% by late afternoon.