Why Is ServiceSource International (SREV) Stock Soaring 40% Higher Today?


ServiceSource International (NASDAQ:SREV) stock is gaining on Monday after the outsourcing service company revealed a deal with Concentrix Corporation (NASDAQ:CNXC).

Image of two business people shaking hands representing SREV stock.

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The big news here is that Concentrix Corporation is acquiring ServiceSource International. This will have it paying $1.50 per share in cash for each share of SREV stock. That represents a 47% premium over the stock’s closing price on Friday.

Concentrix Corporation will have to complete customary closing conditions before the acquisition is complete. That includes getting approval from regulators, as well as holders of SREV stock. So long as there are no problems with this, the two companies expect it to close in the second half of the year.

John Harris, the lead independent director of ServiceSource International’s board, said the following about the deal boosting SREV stock higher today.

“The board of directors is pleased to have reached this agreement, which represents the culmination of a robust process and a comprehensive review of strategic alternatives with our outside legal and financial advisors. This transaction will provide certain and immediate value to our stockholders at a 47% premium.”

It’s also worth noting that SREV stock is seeing incredibly heavy trading on today’s acquisition news. As of this writing, more than 8 million shares of the stock have changed hands. That’s well above its daily average trading volume of around 88,000 shares.

SREV stock is up 41.7% as of Monday morning.

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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.

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