Air Methods Corp (NASDAQ: AIRM)
Air Methods is having a relatively strong day in the market today. At the opening bell, the stock was trading slightly up. From there, it continued upward for a short while before trading flat. Below, we’ll talk about what we’re seeing from AIRM, why, and what we’ll be watching for with regard to the stock moving forward.
What We’re Seeing From AIRM
As mentioned above, Air Methods Corp is having a relatively strong day in the market. After starting the day slightly in the territory of gains, the stock continued on an upward trend for the first few minutes. Since then, it has traded relatively flat. At the moment (9:49), AIRM is trading at $42.85 per share after a gain of $1.45 per share or 3.50% thus far today.
Why The Stock Is Headed Upward
Before we dive too deep into the story here, I’d like to give a big thank you to Trade Ideas for being the first to alert us of the gains on AIRM. When the CNA Finance team received the alert about the gains, we started digging to see why the stock was running for the top. It didn’t take long at all to uncover the story. The gains are ultimately the result of acquisition news.
Early this morning, it was announced that affiliates of American Securities LLC have decided to acquire the company. A definitive agreement was signed, under which American Securities LLC would pay $43.00 per share in cash for the acquisition. In a statement, Aaron Todd, CEO at AIRM had the following to offer…
“This transaction will enable us to continue to execute against our strategy and strengthen our market position as a global leader in air medical transportation and air tourism… American Securities offers us a great opportunity to continue to invest and pursue long-term growth with greater operational flexibility, and we look forward to working with such a sophisticated private equity investor. Importantly, patients, employees, customers and partners will continue to benefit as we execute against our strategy.”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching AIRM incredibly closely. While watching, we’ll be looking for further news surrounding this acquisition as it is still subject to customary closing conditions. Nonetheless, we do expect for the acquisition to go well without delay. We’ll continue to follow the story and bring you any developments as they break!
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[Image Courtesy of Wikimedia]