Command Security Corporation (NYSEAMERICAN: MOC) is having an overwehlmingly strong start to the trading session this morning, and for good reason. The company announced that it will be acquired at a strong premium. Of course, the news excited investors who are sending the stock screaming for the top. Today, we’ll talk about:
- The acquisition;
- what we’re seeing from MOC stock as a result; and
- what we’ll be watching for ahead.
MOC Heads Up On Acquisition News
As mentioned above, Command Security is having an incredibly strong start to the trading session this morning after announcing an acquisition. In a press release issued early this morning, the company said that it has signed a definitive agreement with Prosegur Compañía de Seguridad, S.A. Under the terms of the agreement, MOC will be acquired in an all-cash transaction with a value of $2.85 per share.
In the release, the company pointed to the fact that the transaction represents a 50% premium over the comapny’s closing price yesterday and a 71.6% premium to the company’s 3-month average closing price. The company also said that the boards of directors of both companies involved unanimously support the transaction. In a statement, Craig P. Coy, CEO at MOC, had the following to offer:
This is the perfect match for Command Security and a great deal for our shareholders. We believe that this merger will enable us to grow into new businesses, add broader capabilities, and deploy new resources to meet and expand our current base of business. Prosegur’s management philosophy, commitment to excellence and worldwide experience and innovation match seamlessly with our strategic goals. Our entire management and operations team are excited by this new opportunity and vision for the future.
The above statement was followed up by Prosegur Security Managing Director, Javier Tabernero. Here’s what he had to offer:
We are excited to include Command Security in our operations. They have an impressive management team and high service quality.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Command Security, the news proved to be overwhelmingly positive. Not only will the company be acquired, but the acquisition is happening at a premium that will return incredible value to shareholders. So, it comes as no surprise that excited investors are working to send the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:34), MOC is traidng at $2.78 per share after a gain of $0.88 per share or 46.32% 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 MOC. In particular, we’re interested in following the story surrounding the company’s acquisition. While the agreement is a definitive one, the transaction is still subject to customary closing conditions as well as regulatory approval. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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