Why Critical Event Management Company Everbridge Shares Are Rocketing Premarket Friday

Everbridge, Inc. EVBG shares are trading higher after it amended and restated the previously announced merger agreement with Thoma Bravo.

As per the terms of the amended and restated deal, Thoma Bravo has increased the price at which it has agreed to acquire all outstanding shares of Everbridge to $35.00 per share in cash, or $6.40 per share higher the original transaction price.

The new price, which is higher than that offered by such a third party, values Everbridge at approximately $1.8 billion.

The price represents about a 62% premium to its 90-day volume-weighted average share price as of February 2, 2024, the last trading day before the announcement of the original merger agreement on February 4, 2024.

Earlier, Everbridge agreed to be acquired by software investment firm Thoma Bravo for around $1.5 billion, with Everbridge shareholders receiving $28.60 per share in cash. 

The transaction, approved by the Everbridge Board of Directors, is expected to close in the second quarter of 2024, subject to customary closing conditions.

Upon completion of the transaction, Everbridge will become a privately held company and continue to operate under the Everbridge name and brand.

David Henshall, Chairman and Lead Independent Director of the Board of Directors, said, “The interest we received as part of the go-shop process is a testament to the exceptional company we’ve built, the significant value of our products for organizations all over the world, and Everbridge’s long-term growth potential.”

Last week, Everbridge reported fourth-quarter 2023 adjusted EPS of $0.47, missing the estimate of $0.49, and sales of $115.76 million beat the consensus of $114.67 million.

Price Action: EVBG shares are up 24.5% at $35.20 premarket on the last check Friday.

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