Blackhawk Network Holdings Inc (NASDAQ: HAWK) is having an incredibly strong start to the trading session this morning, and for good reason. The company issued a press release early this morning, informing investors of buyout news. Today, we’ll talk about the buyout, what we’re seeing from the stock, and what we’ll be watching for with regard to HAWK ahead.
HAWK Soars On Buyout News
As mentioned above, Blackhawk Network Holdings is having an incredibly strong start to the trading session today after announcing buyout news. In a press release issued by the company early this morning, HAWK announced that Silver Lake and P2 Capital Partners have agreed to acquire the company in an all-cash transaction with a total price of approximately $3.5 billion.
If this buyout goes through, HAWK shareholders will receive $45.25 per share in cash upon the closing of the transaction. This price represents a 24% premium over the closing price of the stock on January 12, 2018, which was $36.50. In a statement, Bill Tauscher, Executive Chairman of HAWK, had the following to offer:
“After a thorough assessment, the Board has determined that this transaction represents a compelling outcome for our stockholders, customers and employees. It recognizes the value of Blackhawk’s prospects while providing stockholders with an immediate cash value at a substantial premium.”
The above statement was followed up by Talbott Roche, President and CEO at Blackhawk. Here’s what he had to offer:
“This transaction delivers immediate benefits and significant value to our stockholders… Silver Lake and P2 Capital Partners bring the long-term focus, financial resources and technology expertise that can enable us to accelerate growth initiatives globally and research the company’s full potential.”
What We’re Seeing From The Stock
As investors, one of the first things that we learn is that the news moves the market. The truth is that there are few bits of news that have the ability to move the market quite like acquisition news. So, with HAWK releasing news that it will be acquired, it only makes sense that we’re seeing strong gains in the value of the stock today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:01), HAWK is trading at $44.95 per share after a gain of $8.45 per share or 23.15% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on HAWK. In particular, we’re interested in following the acquisition story as the transaction isn’t closed quite yet. Nonetheless, we’ll continue to follow the story and bring the news to you as it breaks!
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