What Happened:
Shares of user support software provider WalkMe (NASDAQ: WKME) jumped 44.1% in the pre-market session after the company announced it has agreed to be acquired by German enterprise software provider SAP for $14.00 per share in an all-cash transaction, representing an equity value of approximately $1.5 billion. The offer price represents a 45% premium to WalkMe's closing share price on June 4, 2024.
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What is the market telling us:
WalkMe's shares are not very volatile than the market average and over the last year have had only 18 moves greater than 5%. Moves this big are very rare for WalkMe and that is indicating to us that this news had a significant impact on the market's perception of the business.
WalkMe is up 38.2% since the beginning of the year. Investors who bought $1,000 worth of WalkMe's shares at the IPO in June 2021 would now be looking at an investment worth $477.61.
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