Invuity Inc (NASDAQ: IVTY) is flying early on in the market this morning, and for good reason. The company announced that it has entered into a definitive agreement to be acquired at an incredible premium. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The acquisition;
- what we’re seeing from IVTY as a result; and
- what we’ll be watching for ahead.
IVTY Announces Acquisition News
As mentioned above, Invuity is having an incredibly strong start to the trading session in the pre-market hours this morning after news broke that the company is going to be acquired. In a press release issued early this morning, Stryker (SYK) announced that it has entered into a definitive agreement to acquire IVTY.
The deal will take place at a price of approximately $190 million, which works out to $7.40 per share. According to the terms of the agreement, Stryker will commence a tender offer for all outstanding shares of common stock at $7.40 per share in an all-cash transaction.
In the release, SYK said that the boards of directors at both companies have approved the transaction. Of course, IVTY shareholders should keep in mind that the closing of the transaction is subject to expiration or termination of the applicable waiting period as well as customary closing conditions. Nonetheless, it is expected that the transaction will close by the end of 2018.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Invuity, the news proved to be overwhelmingly positive. After all, there are few factors that will lead to movement in a stock quite like an acquisition at a strong premium. So, it comes as no surprise to see that excited investors are sending the stock toward the top this morning. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:49), IVTY is trading at $7.35 per share after a gain of $1.60 per share or 27.83% 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 IVTY. In particular, we’re interested in following the story surrounding the company’s acquisition as it is still subject to closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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