Syneos Health (NASDAQ:SYNH) stock is on the rise Wednesday as investors react to news of a $7.1 billion acquisition deal.
A group of investors led by Elliott Investment Management intend to take the healthcare company private for a price of $43 per share. That represents a 24% premium to the unaffected closing price of SYNH stock as of Feb. 13, 2023.
Syneos Health is expecting the acquisition deal to close in the second half of 2023. However, it will first need approval from holders of SYNH stock, as well as from regulators. The Syneos Health Board of Directors is giving its unanimous support to the deal.
John Dineen, chairman of Syneos Health, said this about the deal sending SYNH stock higher today.
“The Company has a strong operating foundation, differentiated, integrated solutions and a focus on being committed to customers. We believe this transaction will enable Syneos Health to continue to accelerate its growth strategy, enhance customer delivery and evolve the organization toward a tech-enabled future.”
What’s Behind The Acquisition Deal
Syneos Health going private comes as it has had trouble pulling in new customers. The company’s services include helping healthcare companies conduct clinical trials. As many companies are cutting funding due to an economic downturn, Syneos Health is having trouble finding revenue sources.
Today’s news also brings heavy trading to SYNH stock with some 3.8 million shares on the move. That’s already above its daily average trading volume of about 1.6 million shares. It also has the company’s stock rising 8.7% as of Wednesday morning.
Investors seeking out more of the latest stock market news will want to keep reading!
We have all of the latest stock market stories traders need to know about on Wednesday! Among them is what has shares of SeaStar Medical (NASDAQ:ICU), Babylon (NYSE:BBLN), and CTI BioPharma (NASDAQ:CTIC) stock moving today. You can read up on all of this news at the following links!
More Stock Market News For Wednesday
- Why Is SeaStar Medical (ICU) Stock Down 32% Today?
- Why Is Babylon (BBLN) Stock Down 57% Today?
- Why Is CTI BioPharma (CTIC) Stock Up 85% 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.
