Shares of the Canadian loyalty e-commerce company Points.com (PCOM) had soared nearly 43% as of 2:30 p.m. ET today after the company announced that it plans to be acquired in an all-cash transaction.
Points.com announced that the private company Plusgrade, a Canadian travel tech company that helps people use reward points to upgrade their airline seats, will acquire the company outright for $25 per share in cash.
The total purchase price of $385 million represents a 45% premium to Points.com's closing price on the Toronto Stock Exchange on May 6, where it is also listed.
The deal is expected to close in July, at which time Points.com will be delisted from the Nasdaq and Toronto exchanges.
Points.com CEO Rob MacLean issued a statement saying: "We are thrilled to be joining forces with Plusgrade in what will become a truly global leader and provider of value-adding and revenue-generating services for partners in the airline, hospitality, rail and financial services industries. Additionally, we have benefited from a supportive group of shareholders over the past number of years and are pleased to have created this compelling outcome."
Plusgrade CEO Ken Harris said the combination of the two companies provides a chance to "create something much greater, for the benefit of our partners in the global travel industry, and ultimately for the benefit of the traveler."
The purchase price represents the highest the stock has been since 2014, so this seems like a relatively good outcome for shareholders. For those interested in merger arbitrage, Points.com as of this writing trades at $24.52 per share, representing some slight upside if and when the deal closes.