Shares of Everbridge (EVBG 18.41%) soared by 18.4% on Monday after the critical event management (CEM) software company agreed to be acquired by private equity firm Thoma Bravo.
Everbridge is going private in a $1.5 billion deal
In a press release Monday morning, Everbridge announced it has entered into a definitive agreement to be acquired by Thoma Bravo for $28.60 per share in cash. That’s a 32% premium over its 90-day volume-weighted average share price, and values Everbridge at roughly $1.5 billion.
Everbridge Chairman David Henshall noted that the company has “consistently reviewed [its] stand-alone opportunity against other strategic opportunities, including dialogue with a range of potential partners” over the past several years. “This agreement is the result of those efforts and reflects our commitment to maximizing value and certainty on behalf of our shareholders,” he said.
What’s next for Everbridge shareholders?
The agreement has already been approved by Everbridge’s board, but still requires approvals from regulators and Everbridge shareholders. Assuming all goes as planned, the deal should close in the second quarter, after which Everbridge will no longer be listed on any public stock exchange.
Everbridge does have a 25-day “go-shop” period, which expires on Feb. 29, that allows it to solicit potentially superior offers. But with shares currently trading at a less than 2% discount from the agreed acquisition price — and unless waiting longer will qualify you for lower long-term capital gains tax rates on your profits — I wouldn’t blame Everbridge shareholders for selling now, taking their money, and putting it to work in any number of other promising software-as-a-service (SaaS) stocks.
Steve Symington has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Everbridge. The Motley Fool has a disclosure policy.