Orbcomm (NASDAQ:ORBC) stock is rocketing higher on Thursday after announcing a deal that will have GI Partners acquiring the Internet of Things (IoT) company.
According to a news release about the deal, it has a total value of $1.1 billion when including Orbcomm’s net debt. GI Partners plans to use cash to acquire the company.
The offer from GI Partners has it setting a price of $11.50 per share for ORBC stock. That’s a 52% premium over the stock’s closing price on Wednesday. It also represents a 50% premium over the stock’s 90-day volume-weighted average share price through Wednesday.
The Board of Directors at Orbcomm has already given its unanimous approval to the acquisition deal. It’s recommending that shareholders in ORBC stock vote in favor of it as well. A special meeting of stockholders will be held to vote on the deal.
Marc Eisenberg, CEO of Orbcomm, said this about the news sending ORBC stock up today.
“This transaction will provide immediate and substantial value to ORBCOMM stockholders, reflecting the tremendous commitment and work of our employees and stakeholders. The partnership with GI Partners will provide us the opportunity to rapidly advance our long-term strategy.”
The deal between the two companies also still needs approval from regulators before it can close. So long as there are no issues here, the two companies expect the deal to close in the second half of 2021.
ORBC stock is seeing heavy trading on today’s news. As of this writing, more than 30 million shares of the stock have changed hands. To put that in perspective, the stock’s daily average trading volume is closer to 1.4 million shares.
ORBC stock was up 51.9% as of Thursday afternoon and is up 61.9% since the start of the year.
Orbcomm isn’t the only company making merger and acquisition news of late.
A handful of other companies have also been working on similar deals. That includes cannabis companies Supreme Cannabis (TSE:FIRE) and Canopy Growth (NASDAQ:CGC), as well as SPAC Altimeter Growth (NASDAQ:AGC), and Support.com (NASDAQ:SPRT). Investors can learn more about these plans below.
More M&A News
- FIRE Stock: 9 Things to Know About Supreme Cannabis and the CGC Stock Deal
- AGC Stock: 19 Things to Know About Altimeter Growth and the Huge Grab SPAC Merger
- Expect Support Stock to Jump By More Than 50% From Its Merger
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.