Why IT Services Firm Perficient Shares Are Jumping Premarket Monday

Perficient, Inc. PRFT shares are jumping premarket today after the company disclosed an acquisition deal and first-quarter FY24 results.

M&A: The company stated that it has entered into a definitive deal to be acquired by an affiliate of BPEA Private Equity Fund VIII (EQT Asia), part of EQT AB EQBBF in an all-cash transaction at an enterprise value of around $3.0 billion.

As per the terms, Perficient shareholders will receive $76.00 per share in cash for each common share they own. 

The purchase price represents a 75% premium to its closing share price on April 29 and a 51% premium to the 30-day volume-weighted average share price for the period ending April 29.

Jeffrey Davis, Chairman of the Board of Perficient, said, “With this agreement with EQT, we will provide our shareholders with compelling, certain cash value for their shares while continuing to support our clients in exceeding expectations, outpacing the competition, and growing their businesses.”

Hari Gopalakrishnan, Partner within the EQT Private Capital Asia advisory team, said, “Perficient is well known for its world class end-to-end digital consulting capabilities, and unmatched global delivery. In recent years, the Perficient team has been successful in expanding the scope of their offerings, and we look forward to supporting them in driving further growth. We have significant experience investing in the digital technology space, and I am confident that this exciting partnership will help strengthen Perficient’s unique position in the marketplace.”

The transaction, which has been unanimously approved by Perficient’s Board of Directors, is expected to close by end-2024, subject to customary closing conditions.

First-Quarter FY24: The company’s first-quarter FY24 revenue decreased 7% Y/Y to $215.3 million, slightly missing the consensus of $215.7 million. Adjusted EPS declined 26% Y/Y to $0.77, in line with the consensus.

Guidance: In light of the acquisition transaction, Perficient withdrew its previously announced financial guidance for 2024 and has suspended any further updates as a result of the pending transaction.

Price Action: PRFT shares are up 52.8% at $73.50 premarket at the last check Monday.

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