Neustar (NSR) Stock: Up Big On Acquisition News

Neustar Inc (NYSE: NSR)

Neustar is having a very strong day in the market today. Since the opening bell, the stock has traded well into the green and stayed there. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching ahead with regard to NSR.

What We’re Seeing From NSR

As mentioned above, Neustar is having an incredibly strong day in the market today. As soon as the opening bell rang, the stock found itself well in the green. Since then, we’re seeing relatively flat movement as the stock holds onto the profits. At the moment (10:30), NSR is trading at $33.15 per share after a gain of $5.50 per share (19.89%) thus far today.

Why The Stock Is Up

As soon as our partners at Benzinga Pro informed us that NSR was making a run for the top, the CNA Finance team started to do some digging to see exactly what was causing the movement. It didn’t take long to uncover the story, and it was a big one. Early this morning, the company announced that it will be acquired.

Neustar has entered into a definitive agreement to be acquired by a private investment group. The group is led by Golden Gate Capital. The deal has a value of around $2.9 billion, which equates to $33.50 per share. That represents a 45% premium on the closing price of the stock directly prior to the agreement. In a statement, James Cullen, Chairman of the Board at NSR, had the following to offer:

We are pleased to have reached this agreement, which will deliver certain and immediate value to our shareholders… We are confident that today’s announcement represents the best path forward for all of Neustar’s shareholders.”

What We’ll Be Watching Ahead

Moving forward, the CNA Finance team will be keeping a close eye on NSR. In particular, we’ll be watching this deal closely to make sure that no wrenches are thrown into the plan. Nonetheless, we’ll track the story and provide you with updates as they become available.

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[Image Courtesy of Wikimedia]

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