Everbridge (EVBG) Shares Skyrocket, What You Need To Know

Max Juang /
2024/03/01 11:40 am EST

What Happened:

Shares of critical event management software company Everbridge (NASDAQ:EVBG) jumped 25.6% in the pre-market session after the company announced a significant increase in the acquisition deal with private equity firm Thoma Bravo. Everbridge's shareholders are set to receive $35.00 per share in cash, marking a $6.40 per share increase over the previous acquisition price. This represents a 62% premium to Everbridge's 90-day volume-weighted average share price, as of February 2, 2024, the day before the original transaction announcement. 

"We're pleased to have negotiated an even higher price for our shareholders," said David Henshall, Chairman and Lead Independent Director of the Everbridge Board of Directors. "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."

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What is the market telling us:

Everbridge's shares are very volatile and over the last year have had 18 moves greater than 5%. But moves this big are very rare even for Everbridge and that is indicating to us that this news had a significant impact on the market's perception of the business. 

The previous big move we wrote about was 25 days ago, when the stock gained 18.6% on the news that the company announced it has agreed to be acquired by private equity firm Thoma Bravo for $1.5 Billion. The deal is expected to "accelerate the company's growth." 

"Over the last several years, we have expanded and evolved our business to support customers in an increasingly complex threat landscape. Thoma Bravo's comprehensive experience in the risk, compliance, and safety sectors and commitment to fostering innovation will enable us to better help our customers keep people safe and their organizations running..." said David Wagner, President and CEO of Everbridge. 

Under the terms of the agreement, Everbridge shareholders will receive $28.60 per share in cash. The purchase price represents a 32% premium to the Everbridge volume-weighted average share price over the last 90 days and an 18% premium over the closing price on Friday, February 2, 2024.

Everbridge is up 55% since the beginning of the year. Investors who bought $1,000 worth of Everbridge's shares 5 years ago would now be looking at an investment worth $490.34.

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