Cynosure is having an incredible time in the pre-market at the moment after an announcement that the company would be taken over broke early this morning. As a result, the stock has gained in a massive way. Below, we’ll talk about what we’re seeing from CYNO, why, and what we’ll be watching for ahead.
What We’re Seeing From CYNO
As mentioned above, Cynosure is having a great time in the pre-market hours today. Ever since the early morning announcement that the company would be acquired broke, the stock has been making a run for the top. At the moment (9:20), CYNO is trading at $65.85 per share after a gain of $14.35 per share or 27.86% thus far today.
Why The Stock Is Gaining
As is almost always the case, our partners at Trade Ideas were the first to inform us of the gains on CYNO. As soon as the CNA Finance team received the alert, we started digging to see what was causing the movement. It didn’t take long to dig up the story. Today’s gains on the stock are the result of an acquisition.
Early this morning, it was announced that Hologic will be taking over Cynosure. The takeover comes with a price of $66 per share, to be paid in cash. This brings the total value of the acquisition to approximately $1.65 billion. In a statement, Steve MacMillan, Chairman, President, and CEO at Hologic had the following to offer…
“Acquiring Cynosure will accelerate our transformation into a higher-growth company by leveraging our core women’s health expertise and OB/GYN channel leadership into an adjacent, cash-pay segment that is expanding at a low double-digit rate… We had identified medical aesthetics as an attractive and complementary growth opportunity through our strategic planning process, and are pleased to have agreed to acquire Cynosure, the best-in-class company in the space. Together, we can strengthen our shared focus on innovation, market-leading products with demonstrated clinical benefits, and strong customer relationships.”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CYNO. In particular, we’re watching to make sure that everything goes smoothly with the acquisition as it is still at the mercy of customary closing conditions. Nonetheless, we’ll keep a close eye on the news and be sure to bring it to you as it breaks!
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