Shares of Presidio (PSDO) soared on Wednesday after the IT solutions provider agreed to be acquired in an all-cash transaction. The stock was up about 21.5% at 12:30 p.m. EDT.
Presidio announced on Wednesday that it had entered a definitive agreement to be acquired by funds advised by investment firm BC Partners. The deal is valued at $2.1 billion, including Presidio's net debt.
Presidio shareholders will receive $16 per share in cash, a 21.3% premium to the closing price on Aug. 13. The company expects to continue to pay its $0.04 quarterly per-share dividend until the transaction is complete.
"We believe this transaction will provide immediate and substantial value to Presidio stockholders, while providing us with a partner that can add strategic and operational expertise to our business, with a focus on executing our long-term strategy," said Presidio CEO Bog Cagnazzi in prepared remarks included in the press release announcing the deal.
Presidio expects the transaction to close in the fourth quarter of 2019, at which time the company will become privately held. Presidio can actively consider alternative acquisition proposals during a 40-day "go-shop" period as part of the deal.