Shares of online marketing-solutions company Web.com (NASDAQ: WEB) jumped as much as 11.4% on Monday. At the time of this writing, shares are up 11.3%.
The stock's rise followed a press release on Monday morning from Web.com stating the company received a revised bid from affiliates of private equity firm Siris Capital Group to buy the marketing-solutions platform for a higher price.
Earlier this summer, affiliates of private equity firm Siris Capital Group had made an all-cash offer to buy Web.com for about $2 billion, or $25 per share. That represented an 8% premium from where Web.com was trading at the time, and the news drove the stock higher after the announcement.
But the offer allowed for a "go-shop" period until Aug. 5 during which time Web.com was able to solicit other buyout offers and strategic propositions. During this period, Web.com received a competing acquisition proposal that was superior to the original merger agreement with Siris' affiliates. This lead to several rounds of negotiations, and ultimately, a revised merger agreement for Siris' affiliates to buy Web.com for an all-cash deal valued at $28 per share.
Though Web.com continues to expect the transaction with Siris' affiliates to close during the fourth quarter of 2018, the deal is subject to the approval of Web.com shareholders and customary closing conditions.
In addition, the revised deal allows the new financial bidder to make a higher bid. But if Web.com accepts a higher bid from the new bidder, it will be required to pay a $39.1 million termination fee to an affiliate of Siris.