What happened
Shares of Dun & Bradstreet (DNB) rose as much as 17.2% on Thursday. But shares are up 16.4% at the time of this writing.
The big move in the business intelligence company's stock price follows its second-quarter earnings release as well as an announcement that the company entered into a deal to be acquired by a consortium to be taken private.
Image source: Getty Images.
So what
Dun & Bradstreet's second-quarter results were mixed. Revenue was $439.6 million, up 8% year over year and above a consensus analyst estimate for revenue of $403 million. Non-GAAP earnings per share (EPS) were $1.40 -- the same as they were in the year-ago quarter. On average, analysts expected non-GAAP EPS of about $1.52.
It was likely the news that Dun & Bradstreet had entered into a deal to go private that was the primary driver for the stock's move higher. As part of the deal, shareholders would receive $145 per share in cash -- 18% above where shares were trading on Wednesday.
The consortium purchasing Dun & Bradstreet is an investor group led by CC Capital, Cannae Holdings and funds affiliated with Thomas H. Lee Partners, L.P., and "a group of other distinguished investors," the company said in a press release about the deal.
In total, the transaction would be valued at $6.9 billion.
Now what
Investors shouldn't consider the deal to be in the bag just yet. Though the merger is expected to close in six months, it still needs shareholder approval and regulatory clearances. Further, the deal importantly includes a "go-shop" clause that lets Dun & Bradstreet solicit other proposals for 45 days.
