Applied UV (NASDAQ:AUVI) stock is rising higher on Tuesday as investors react to news of two acquisitions.
Applied UV is acquiring PURO Lighting and LED Supply Co., both of which are privately-held companies. Both of these companies hold disinfection devices that would expand the reach of Applied UV.
To go along with this, Applied UV will gain other benefits from its acquisition of PURO Lighting. That company already has a relationship with Acuity Brands (NYSE:AYI), which AUVI wants to maintain and expand on.
Details of the Deals
Applied UV notes it’s using a mix of cash and stock to fund its acquisition of these two companies. The total value of the acquisitions comes to $20 million. Investors will note that the deals use a value of $2 per share for AUVI stock, which is well above its current price.
Max Munn, founder and president of Applied UV, said the following in a press release:
“With an estimated additional $18 million in revenue for the 12 months ending September 30, 2022, the PURO and LED Supply acquisitions would effectively double the size of our company. We anticipate that the combined company is likely to generate approximately $45-$50 million of revenues in FY 2023, with a strong balance sheet to support the revenue growth.”
AUVI stock is also seeing heavy trading today as some 11 million shares change hands. That’s well above its daily average trading volume of about 426,000 shares. AUVI stock is also up 12% as of Tuesday morning.
Investors seeking more of the latest stock market news are in luck!
InvestorPlace is home to all of the hottest stock market news for Tuesday! That includes what has shares of Lucid (NASDAQ:LCID) and Cenntro Electric (NASDAQ:CENN) stock moving, as well as the biggest pre-market stock movers from this morning. You can find more on these matters at the links below!
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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.