Shares of Inteliquent Inc. (NASDAQ:IQNT) were up 35.1% as of 1 p.m. EDT Thursday after the voice and messaging interconnection services specialist agreed to be acquired.
More specifically, yesterday after the market close, Inteliquent revealed it has entered into a definitive agreement to be acquired by an affiliate of private equity firm GTCR LLC for $23 per share. That's good for a 37% premium to Tuesday's closing price, and values the company at roughly $800 million.
Inteliquent CEO Matt Carter explained the reasons for the acquisition:
Over the past several quarters, Inteliquent has been transforming its business to become a leader in the next-generation communications services market. The acquisition of Inteliquent by GTCR and Onvoy validates our Growth Forward strategy. We believe this transaction will deliver immediate, significant and certain cash value to our stockholders while creating a market leading provider.
Following the acquisition -- which has no financing condition associated with it and is expected to close in the first half of 2017 -- Inteliquent will be merged with a subsidiary of communications technology services specialist Onvoy LLC.
"We look forward to working with the Inteliquent team to continue the network expansion and to empower innovation for our shared customer base," stated Onvoy CEO Fritz Hendricks.
As it stands, the deal still requires approval from Inteliquent shareholders, and its terms allow the company 30 calendar days to solicit alternative proposals. But given the gravity of today's pop, which brought shares within pennies of the proposed acquisition price -- and assuming holding until closer to the acquisition's close won't result in more favorable capital gains tax treatment -- I think Inteliquent investors would be wise to take their profits off the table and put them to work elsewhere.