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Why Talend Stock Soared on Wednesday

By Daniel Sparks - Mar 10, 2021 at 11:16AM

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Shareholders may soon receive cash in exchange for their shares.

What happened

Shares of Talend (TLND), a provider of a software platform for integrating data and applications, skyrocketed on Wednesday. The stock rose as much as 28.5%. As of 10:38 a.m. EST, shares were up 27.5%.

The tech stock's gain follows news that Talend entered into an agreement to go private in a cash deal.

A chart showing a stock price rising sharply.

Image source: Getty Images.

So what

Explaining why the stock jumped more than 27% to approximately $65.50, the deal states that Talend shareholders will receive $66 of cash per share. The tech stock's higher price tag puts shares closer to the targeted acquisition price.

Buying the company is a French software and technology private equity firm, Thoma Bravo.

The deal "will deliver compelling and certain cash value to Talend shareholders and significant strategic, long-term benefits for our customers, employees, and other stakeholders," said Talend chairman Steve Singh in a press release on Wednesday morning.

Now what

The deal is expected to close in the third quarter of 2021 and is subject to follow-up closing conditions.

In addition, Talend notably has a 30-day "go-shop" period, ending on April 10, in which it can solicit other acquisition proposals. "There can be no assurance that this 'go-shop' will result in a superior proposal," the company said, "and Talend does not intend to disclose developments with respect to the solicitation process unless and until it determines such disclosure is appropriate or is otherwise required."

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