What happened
Shares of Stamps.com (NASDAQ: STMP) soared 64% on Friday after the shipping-services leader announced it struck a deal to be acquired by private equity firm Thoma Bravo.
So what
The all-cash deal values Stamps.com at roughly $6.6 billion. If the transaction is completed, shareholders will receive $330 in cash for each share they own, a 67% premium over Stamps.com's closing share price on Thursday.
Thoma Bravo hopes to make Stamps.com its latest acquisition. Image source: Getty Images.
The deal gives Stamps.com's board of directors a 40-day period to shop for a better offer. Still, the transaction is expected to close in the third quarter, subject to regulatory and shareholder approval.
Now what
Stamps.com's software helps businesses more efficiently run their shipping operations. It's benefited from the torrid growth of e-commerce in recent years, due in part to its partnerships with rapidly expanding companies like Shopify.
Now, Stamps.com is seeking to partner with Thoma Bravo in order to bolster its technological expertise and access to expansion capital. "With the financial and operational support of Thoma Bravo, Stamps.com can continue to innovate and pursue growth opportunities to capture the expanding e-commerce shipping market and extend our position as the leading global multi-carrier e-commerce shipping software company," Stamps.com CEO Ken McBride said in a press release.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends Stamps.com and recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
