Everbridge, Inc. (NASDAQ: EVBG) shares are rising on the charts today, surged by 25.19% to $35.39 as of the last check during premarket trading. This increase is the result of an acquisition agreement amendment. Everbridge and renowned software investment firm Thoma Bravo have announced the restatement and modification of the original February 4, 2024 merger agreement.
A $6.40 increase over the initial offer has been made by Thoma Bravo under this amended agreement, making its purchase offer $35.00 per share in cash. Everbridge is valued at approximately $1.8 billion based on this adjusted acquisition price, which represents a significant 62% premium over EVBG’s 90-day volume-weighted average share price as of February 2, 2024.
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The amendment indicates Thoma Bravo’s faith in Everbridge’s value proposition and long-term growth potential, as well as Everbridge’s capacity to negotiate a better price for its shareholders. A clause for a “go-shop” time was incorporated in the original merger agreement, allowing Everbridge to look for other purchase offers from certain third companies.
A third party made an acquisition price proposal at this time that was more than Thoma Bravo’s initial bid. After that, Everbridge and Thoma Bravo renegotiated the merger agreement, ultimately agreeing to a higher price per share of $35.00, surpassing the third party’s proposals.
After being authorized by Everbridge’s Board, the modified agreement is anticipated to complete in the second quarter of 2024, pending normal closing requirements and regulatory clearances. Upon completing the transaction, Everbridge’s common stock will cease trading on public markets, but it will continue operating under its current brand and name.
In addition to demonstrating the company’s commitment to providing value to its investors, this achievement also represents an important turning point in the company’s history. Everbridge’s pre-market positive momentum highlights investor confidence in the updated Thoma Bravo merger deal.
Everbridge’s stockholders will benefit from the higher offer price and the impending purchase, which further solidifies the company’s dominant position in the software industry.
