What happened
Shares of Tabula Rasa HealthCare (TRHC) were up more than 31% at 10:55 a.m. on Monday after the company announced that it had entered into a definitive merger agreement to be acquired by the private equity firm Nautic Partners for $10.50 in cash per share and will combine with ExactCare Pharmacy, a portfolio company of Nautic. The stock reached a 52-week high on Monday and is up more than 108% so far this year.
So what
Tabula Rasa is a healthcare company that focuses on managed care for value-based care organizations. Basically, the company uses its platform to help healthcare organizations improve medication regimens for better patient outcomes, lower healthcare costs and lower risk. The combination with ExactCare is viewed as complementary and should provide some synergy as the company looks to increase its client base.
The deal will pay shareholders a 34% premium on the stock's closing price from Aug. 4. The all-cash deal is worth roughly $570 million, including debt of around $262 million. The transaction is expected to close by the fourth quarter.
Now what
It's an easy win for current investors in Tabula Rasa. The company has been growing revenue, but has not been profitable.
Tabula Rasa also reported second-quarter earnings before the markets opened on Monday. The company said it had revenue of $90 million, up 24%, year over year, and 2% sequentially. It also reported a net loss of $9.7 million, compared to a $12.7 million loss in the same period a year ago. Due to the impending merger, Tabula Rasa said it wouldn't provide guidance for the remainder of the year.
