Image source: InvenSense, Inc.

What happened

Shares of InvenSense Inc. (NYSE:INVN) jumped 67.4% in the month of December, according to data provided by S&P Global Market Intelligence, after the motion-sensing chip company agreed to be acquired by Japan-based TDK Corp. (OTC:TTDKY).

So what

The jump came in two stages. First, InvenSense stock rose almost 30% in a single day on Dec. 9, 2016, as Reuters reported that TDK had offered $12 per share to purchase the smaller company. That offer would have reflected a 45% premium to InvenSense's opening price that day, but still only 3% above its 52-week high set around the same time a year earlier. 

Then after hovering just below $11 per share for the next week and a half, InvenSense shares jumped another 18% on Dec. 21, 2016 as the two companies made it official. TDK ultimately increased its offer to $13 per share, representing a 52.4% premium over InvenSense's 60-day volume-weighted average trading price as of the previous day's close. 

Now what

Shares of InvenSense currently trade at $12.79 as of this writing, or a minuscule 1.6% discount to the acquisition price. This reflects the near certainty that this deal -- which has already been unanimously approved by both companies' boards of directors -- will be completed as expected in the second quarter of InvenSense's fiscal year ending March 31, 2018. As such, I think InvenSense investors would be wise to take their profits and put them to work elsewhere.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.