Enterprise software company Everbridge (NASDAQ:EVBG) soared in trading after announcing that the company would be acquired by Thoma Bravo in an all-cash transaction for around $1.5 billion. The acquisition is expected to aid Everbridge’s growth amid global uncertainty.
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According to the terms of the acquisition, shareholders will receive $28.60 per share in cash, indicating a premium of 32% to Everbridge’s volume-weighted average share price (VWAP) over the last 90 days. The acquisition is expected to close in the second quarter of this year and is not subject to a financing condition.
The acquisition includes a 25-day “go-shop” period that allows for alternative proposals. After the closing of the acquisition, Everbridge will become a privately held company.
Is Everbridge a Good Stock to Buy?
Over the past year, Everbridge has slid by more than 20%. Wall Street analysts remain sidelined about EVBG stock with a Hold consensus rating based on 1 Buy, six Holds, and three Sells. The average EVBG price target of $22.76 implies a downside potential of 19.26% at current levels should the deal fall through.
