Mattersight Corp (NASDAQ: MATR) is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it has entered into a definitive agreement to be acquired. Of course, the acquisition comes at a premium, exciting investors. Today, we’ll talk about:
- The news of the acquisition;
- what we’re seeing from the stock;
- and what we’ll be watching for with regard to MATR ahead.
MATR Announces Acquisition News
As mentioned above, Mattersight, a company focused on cloud-based analytics, is flying in the market this morning after news of an acquisition hit the tape. In a press release issued early this morning, it was announced that MATR has entered into a definitive agreement with NICE to be acquired. Under the terms of the agreement, shareholders will be paid in the amount of $2.70 per common share owned. In a statement, Barak Eilam, CEO at NICE, had the following to offer:
Analytics is the cornerstone of NICE’s strategy of creating a new customer service paradigm with CXone and Adaptive WFO.
We were very impressed with Mattersight’s innovative technology and domain expertise, as well as their long standing strategic relationships with some of the largest customer service organizations. This acquisition reaffirms our commitment to delivering analytics in the cloud and to be at the forefront of the analytics market.
The above statement was followed up by Kelly Conway, CEO at MATR. Here’s what she had to offer:
we are excited to join forces with NICE, a leader in its space. We are convinced that the combination will allow us to provide the best solutions to our customers, and be a great home for our products and team.
What We’re Seeing From The Stock
One of the first things that we learn when we start to dabble in the market is that the news causes moves. In this particular case, the news proved to be overwhelmingly positive. After all, Mattersight is being acquired at a strong premium. This extends an immediate value addition to their investors. So, it’s no surprise that the stock is making a run for the top. At the moment (8:40), MATR is trading at $2.70 per share after a gain of $0.55 per share or 25.58% 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 MATR. In particular, we’re interested in following the story surrounding the acquisition. While the agreement is definitive, the transaction is still subject to regulatory approval and 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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