Shares of Sumo Logic Inc. SUMO slumped 2.4% in morning trading Thursday, after the data analytics software company confirmed it was being acquired by investment firm Francisco Partners, but at a price below the previous session’s close. Under terms of the deal, which is valued at $1.7 billion, Sumo Logic shareholders will receive $12.05 in cash for each Sumo Logic share they own, which is 1.1% below Wednesday’s closing price of $12.18, but 57.1% above the Jan. 20 close of $7.67, before a report of a potential deal first surfaced. Late Wednesday, The Wall Street Journal had reported that Francisco Partners was nearing a $1.7 billion deal to buy the company. “The Sumo Logic Board conducted a thorough evaluation of strategic alternatives and spoke with a number of strategic and financial partners,” said Chuck Robel, lead independent director of Sumo Logic’s board of directors. “The transaction with Francisco Partners delivers a substantial premium and a compelling cash value to our stockholders.” The stock has run up 78.2% over the past three months but has slipped 2.8% over the past 12 months, while the S&P 500 SPX has lost 9.6% over the past year.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
0
0
