Shares of Dun & Bradstreet (NYSE: DNB) rose as much as 17.2% on Thursday. But shares are up 16.4% at the time of this writing.
The big move in the business intelligence company's stock price follows its second-quarter earnings release as well as an announcement that the company entered into a deal to be acquired by a consortium to be taken private.
Image source: Getty Images.
Dun & Bradstreet's second-quarter results were mixed. Revenue was $439.6 million, up 8% year over year and above a consensus analyst estimate for revenue of $403 million. Non- G AAP earnings per share (EPS) were $1.40 -- the same as they were in the year-ago quarter. On average, analysts expected non-GAAP EPS of about $1.52.
It was likely the news that Dun & Bradstreet had entered into a deal to go private that was the primary driver for the stock's move higher. As part of the deal, shareholders would receive $145 per share in cash -- 18% above where shares were trading on Wednesday.
The consortium purchasing Dun & Bradstreet is an investor group led by CC Capital, Cannae Holdings and funds affiliated with Thomas H. Lee Partners, L.P., and "a group of other distinguished investors," the company said in a press release about the deal.
In total, the transaction would be valued at $6.9 billion.
Investors shouldn't consider the deal to be in the bag just yet. Though the merger is expected to close in six months, it still needs shareholder approval and regulatory clearances. Further, the deal importantly includes a "go-shop" clause that lets Dun & Bradstreet solicit other proposals for 45 days.
10 stocks we like better than Dun & Bradstreet
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Dun & Bradstreet wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .