What happened
Shares of EXFO Inc. (EXFO) surged on Monday, rising more than 60%.
The communications equipment company's shares are trading higher after the company announced a deal to go private later this year as part of an all-cash transaction.
Image source: Getty Images.
So what
Highlighting why the tech stock is trading more than 60% above where it was trading last week, the deal price is $6 per share -- a 63% premium to the stock's 20-day volume-weighted average trading price. EXFO shareholders, of course, will receive $6 of cash per share they own if the deal closes.
The buyout is led by EXFO's founder, executive chairman, and majority shareholder, Germain Lamonde.
Now what
The deal, of course, is subject to court approval, a shareholder vote, and other customary closing conditions. EXFO estimates the buyout will close no later than Sep. 30, 2021.
Lamonde says he plans to remain with the company. "My objective is to continue working with our talented management team and employees globally to further develop what has become a successful global Test and System provider while maintaining its headquarters in Quebec City," he said in a press release about the deal.
