Shares of Cambium Learning Group (NASDAQ: ABCD) rose on Monday after the educational technology company announced that it had agreed to be acquired by a private equity investment firm. The stock was up about 19.3% at 12:50 p.m. EDT.
Cambium has entered into a definitive merger agreement with certain affiliates of Veritas Capital. Shareholders will receive $14.50 for each share of Cambium stock when the transaction closes, which is expected to occur in the fourth quarter of 2018 or the first quarter of 2019. The deal has been unanimously approved by the board of directors.
This transaction brings to a close the review of strategic alternatives the company began in May. The company plans to complete its previously announced acquisition of VKidz Holdings immediately prior to the closing of this deal. "We look forward to helping even more students with the addition of VKidz and working with Veritas Capital on the next chapter of our long-term growth story," said Cambium CEO John Campbell.
Shares of Cambium had more than doubled this year prior to Monday's rally, driven in part by improving results. The $14.50 buyout price is close to triple the stock's 52-week low.
"We look forward to supporting Cambium's continued growth and investment in the development of new, innovative products, technology and services to help improve outcomes for students, parents, educators and school districts," said Veritas Capital CEO and managing partner Ramzi Musallam.