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Accelerant Holdings to be acquired for $4 billion by Thoma Bravo
The deal values the offer at $20.25 per share, a 49.0% premium, and includes a 6.0% per year ticking fee if certain insurance regulatory approvals delay closing.
Accelerant Holdings (NYSE:ARX) shares surged week over week after the company said it is set to be acquired for $4 billion by software-focused investment firm Thoma Bravo, with the stock jumping further on Thursday when the offer price was placed at $20.25.
The offer represents a 49.0% premium over Accelerant’s closing price on Wednesday. Under the agreement, the company will pay Class A and B shareholders a ticking fee of 6.0% per annum if closing is delayed by certain pending insurance regulatory approvals.
Accelerant expects the transaction to close in the first half of the year, subject to customary closing conditions including regulatory and shareholder approvals. After closing, the company would become private and stop trading on the New York Stock Exchange.
The acquisition also followed strong quarterly results, with Accelerant reporting net income rising 511.0% to $80.0 million in the second quarter from $13.1 million a year earlier, and total revenues up 63.0% to $356.9 million from $219.1 million.
Yahoo Finance reports Accelerant’s CFO, Linda Huber, said the quarter highlighted the growth and durability of the business, citing growth in exchange written premium and increases in fee-based operating revenue and adjusted EBITDA.