US Geothermal Inc (NYSEAMERICAN: HTM) is having an overwhelmingly strong day in the market today after announcing merger news. In fact, early this morning, the company announced a definitive merger agreement that led to excitement among investors, sending the stock skyrocketing. Today, we’ll talk about the merger, what we’re seeing from the stock, and what we’ll be watching for with regard to HTM ahead.
HTM Will Be Acquired
As mentioned above, U.S. Geothermal is having an incredibly strong day in the market today after announcing merger and acquisition news. In a press release issued early this morning, the company announced that it has entered into a definitive merger agreement with a wholly owned subsidiary of Ormat Technology, Inc. (ORA).
Under the terms of the agreement, the wholly owned subsidiary of Ormat will acquire HTM for $5.45 per share. In the release, the company said that the transaction will be made in all cash. Also, the Boards of Directors of both companies have unanimously approved the transaction. Based on the prior day closing price on the stock, the premium on the deal is approximately 28.5%. In a statement, Doug Glaspey, Founder and CEO at HTM, had the following to offer:
We are proud that Ormat, the industry leader in geothermal development, recognized our company’s value and have confidence in their ability to successfully develop the US Geothermal asset base… This transaction provides compelling value to our shareholders and is a testament to the hard work and efforts of our talented team members.
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