GTY Technology (NASDAQ:GTYH) stock is skyrocketing on Friday after the cloud software solutions company revealed a major deal with private investment firm GI Partners.
This deal will have GI Partners taking GTY Technology private to the tune of $6.30 per share. That payment will be in cash and represents a 123% premium over the closing price for GTYH stock on Thursday. It’s also a 57% premium over the 90-day volume-weighted average for the shares.
GTY Technology’s board of directors has already thrown its full support behind the deal. Now it’ll just need to clear regulators and shareholders. Currently, the expectation is for it to close in the third quarter of the year.
TJ Parass, CEO of GTY Technology, said the following about the deal to take GTYH stock private.
“GI Partners has an excellent track record of supporting and adding value to leading software companies, and we are delighted to bring on a partner of GI Partners’ caliber. This transaction will provide immediate and substantial value to GTY shareholders. The Company will have greater flexibility to focus on executing our strategy, and we are excited to begin our long-term partnership with GI Partners.”
GTYH is experiencing heavy trading on Friday following the acquisition news. As of this writing, more than 6 million shares of the stock have changed hands. For the record, that’s well above the company’s daily average trading volume of about 134,000 shares.
GTYH stock is up 117.8% as of Friday morning but is down 6.2% since the start of the year.
Investors on the lookout for more recent stock market news are in luck!
InvestorPlace has a collection of all the latest stock news traders need to know about for Friday! Among that is what has Chinese stocks on the move, why shares of AbbVie (NYSE:ABBV) stock are falling, as well as why Alibaba (NYSE:BABA) stock is rising. You can find all of this news at the links below!
More Stock Market News for Friday
- Chinese Stocks News: Why Are BABA, JD, BIDU, IQ, PDD Stocks Up Today?
- Why Is AbbVie Stock Down Today?
- Why Is Alibaba (BABA) Stock Up Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.