Network security systems provider SonicWall Inc. (SNWL) jumped 26% to $11.35 for the biggest intraday rally since October 2001, after the co. agreed to be acquired by an investor group led by private equity firm Thoma Bravo LLC in a deal valued at approximately $717 million.
Under the deal announced late Wednesday, SonicWall shareholders will get$11.50 in cash for each share of SonicWALL common stock they hold, a 28 percent premium over the company’s last closing share price, and a 63% premium over the company’s enterprise value.
“Our agreement with Thoma Bravo represents an attractive valuation for our shareholders, and we look forward to closing the transaction as quickly as possible,” said Matthew Medeiros, SonicWALL’s President and Chief Executive Officer. “A partnership with Thoma Bravo will strengthen our focus on delivering the most advanced and highest quality solutions to our customers.”
SonicWALL’s board has unanimously approved the merger and recommends shareholders approved it. The deal, which is subject to customary closing conditions, is expected to close in the fiscal quarter ending Sept. 30, or early in the quarter ending Dec. 31.
SonicWall’s stock jumped $2.33, or 25.92 percent, to $11.30 at 11:42AM EDT in Nasdaq trading.