Shares of Bazaarvoice Inc. (NASDAQ: BV), a user-generated content platform provider, jumped on Monday after the company agreed to be acquired. Bazaarvoice also announced its second-quarter results, but this was overshadowed by the acquisition news. The stock was up about 13% at noon EST.
Marlin Equity Partners has agreed to acquire Bazaarvoice for $5.50 per share in cash, an 18% premium to the average closing price in the 30-day period ending Nov. 24. The deal is valued at $521 million.
Bazaarvoice will remain headquartered in Austin, Texas after it becomes a privately held company at the close of the transaction. The deal still requires regulatory approval and a majority vote from Bazaarvoice shareholders at a special meeting. The company expects the transaction to close during the first calendar quarter of 2018.
The acquisition price of $5.50 per share represents a new 52-week high, but it's well below an all-time high of around $20 per share reached soon after the initial public offering in 2012. It's also well below the $12-per-share IPO price.
Bazaarvoice's board of directors sees the acquisition as the best path forward: "The Board of Directors appreciates the patience that our stockholders have shown as we've worked to improve our business and operations. The Board ultimately decided, after extensive engagement with stockholders and an extended and thorough process, that Marlin's offer to acquire Bazaarvoice is the best way to maximize value for our stockholders."
Given the acquisition news, Bazaarvoice will not be holding a conference call to discuss its second-quarter results.