KEYW Holding Corp. (NASDAQ: KEYW) is climbing in the market this morning, and for good reason. The company announced that it has entered into a merger agreement, under which, it will be acquired at a strong premium.
As you could imagine, the news excited investors who are pushing the stock on a run for the top. Today, we’ll talk about:
- The acquisition news;
- what we’re seeing from KEYW stock as a result; and
- what we’ll be watching for ahead.
KEYW Stock Rockets On Acquisition News
As mentioned above, The KeyW Holding Corporation is having a great day in the market today after announcing acquisition news. The news came by way of press release early this morning.
In the release, the company said that it has signed a definitive agreement and plan of merger with Jacobs and Atom Acquisition Sub, Inc. Jacobs and Atom Acquisition Sub is a newly created, wholly owned, indirect subsidiary of Jacobs.
According to the terms of the agreement, Jacobs will acquire KEYW at a price of $11.25 per share. The total value of the acquisition comes to approximately $815 million, including about $272 million of the company’s debt. All in all, the transaction represents a premium of 43% to the company’s closing price on April 18, 2019.
In a statement, Bill Weber, President and CEO at KEYW, had the following to offer:
This transaction will propel KeyW’s capabilities further and create new opportunities for research and development our customers need to enhance their national security and intelligence capabilities.
With the currently strong federal funding scenario and KeyW’s solid reputation in ISR, Cyber and Analytics services technologies, I believe combining with Jacobs will provide our customers a wide array of capabilities and services via a broad range of contracting vehicles.
Cultural fit and exceptional shareholder value were of paramount importance in the selection criteria for partnership in KeyW’s next chapter. We believe that joining with Jacobs will enable KeyW’s talented team to deliver even more innovative technologies and capabilities to customers.
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. When it comes to KeyW Holding, the news proved to be overwhelmingly positive.
After all, the acquisition that is taking place will take place at a strong premium. This will provide an exceptional return of value to shareholders. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:04), KEYW is trading at $7.86 per share after a gain of $3.34 per share or 42.49% 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 KEYW. In particular, we’re interested in following the story surrounding the company’s acquisition as the deal is still subject to customary closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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