now This This was a great way for a stock to start its trading week. KnowBe4 (KNBE -2.41%) announced Monday morning that it has received a takeover bid at a higher premium to its share price. Investors and at least one analyst think cybersecurity education professionals will eventually be sold; As a result, KnowBe4’s stock price rose nearly 24% this week, according to data compiled by S&P Global Market Intelligence.
The buyer is private equity firm Vista Equity Partners, which has offered to purchase all of KnowBe4’s outstanding shares at a price of $24 per share. This amount will be paid out entirely in cash. Specialty Tech Co. didn’t hesitate to mention that the offered price is 39% higher than the stock’s closing price on the previous trading day.
In what is likely to be a very quick process, KnowBe4 has formed a special committee from its board of directors to evaluate Vista’s proposal. The company said it would not make any further official comments until this assessment is complete. By the time the market closed on Friday, it had kept its promise.
After the undervalued share price hit the news on Monday, shares pretty much went into a holding pattern while investors waited for the latest news.
Investors were clearly confident that the deal would go through as the hold pattern kept the shares in a fairly tight range above $21. Meanwhile, an analyst also believes that KnowBe4 will change hands: UBSFatima Boolani raised her price target on the stock on Tuesday morning. She now believes the $24-per-share offer is worthwhile and maintains her Neutral recommendation after the share price jump.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.