Why Apptio Stock Soared on Monday
Shares of Apptio (NASDAQ: APTI) , provider of cloud-based technology business management solutions, soared on Monday, rising nearly 52% as of 3:06 p.m. EST.
The stock's rise follows news on Sunday that Apptio had entered into a definitive agreement to be acquired by investment firm Vista Equity Partners.
Explaining the stock's big jump was the news that Vista has agreed to acquire all outstanding shares of Apptio in a deal valued at $1.94 billion, translating to $38 in cash per share. This represents a 53% premium to where Apptio stock was trading as of market close on Nov. 9.
"Vista's investment and deep expertise in growing world-class SaaS businesses and the flexibility we will have as a private company will help us accelerate our growth while helping us maintain our commitment to creating wildly successful customers," said Apptio CEO Sunny Gupta in a press release about the deal.
Though Apptio's board of directors unanimously approved this deal, shareholders will still need to vote -- and the deal is subject to regulatory customary closing conditions. In the meantime, part of the deal's arrangement includes a 30-day "go-shop" period that will allow Apptio to solicit alternative acquisition offers.
Given the significant premium Vista is paying for Apptio, shareholders are likely to vote to approve the deal.
The acquisition is expected to close in the first quarter of 2019.
10 stocks we like better than Apptio, Inc.
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 Apptio, Inc. 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