Eargo Shares Are Soaring Monday: What's Driving The Action?

Eargo Inc EAR shares are trading higher Monday after the company announced it will be taken private by Patient Square Capital. 

What Happened: Eargo entered into a definitive merger agreement in which an affiliate of Patient Square agreed to acquire all outstanding shares of Eargo for $2.55 per share in cash.

A special committee of Eargo's board determined that the transaction was in the best interest of shareholders and unanimously recommended the board approve the transaction. Acting on the recommendation, the board approved the agreement.

The transaction is expected to close in the first quarter of 2024. Eargo is set to become a privately held company and will no longer be listed on the Nasdaq. 

Eargo is a medical device company focused on improving hearing health.

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EAR Price Action: Eargo shares were up 51.8% at $2.55 at the time of publication, according to Benzinga Pro.

Photo: 3844328 from Pixabay.