Gridsum Holding Inc. (NASDAQ: GSUM) has announced today that it has signed a merger agreement with Gridusm Corporation (Parent) and Gridsum Growth Inc., which is a wholly-owned subsidiary of the parent. As per the agreement, the company will be bought by an investor consortium led by Mr. Guosheng Qi who is the Chairman, in an all-cash transaction valued at US$75.5 million.
In accordance with the Merger agreement, each ordinary share of the Company issued and outstanding will be canceled immediately before the Effective Time and cease to exist in the exchange for US$2.00 in cash without interest. While each outstanding American depositary share of the Company will be canceled in exchange for US$2.00 in cash without interest.
All the above-mentioned shares will cease to exist in the exchange except the shares held by the Chairman, Mr. Guofa Yu, and their affiliates, Shares held by Parent, Merger Sub, the Company, or any of their direct or indirect wholly-owned subsidiaries, Shares owned by the shareholders who have validly exercised and not effectively withdrawn or lost their rights to show the disapproval from the merger, and the Shares reserved by the Company for settlement upon exercise or vesting of Company’s options and/or restricted share unit awards.
Gridsum Holding Inc. (NASDAQ: GSUM) shares were trading up 1.68% at $1.21 on Wednesday. Its share price went from a low point around $0.24 to briefly over $2.50 in the past 52 weeks, though shares have since pulled back to $1.21. It has moved up 410.55% from its 52-weeks low and moved down -51.60% from it 52-weeks high. Gridsum Holding Inc.’s market cap has remained high, hitting $40.22 M at the time of writing.
The merger agreement is anticipated to close in the first quarter of 2021. The merger agreement will be closed after the approval of shareholders. The company has also decided to file with US Securities and Exchange Commission. The filing includes the proxy statement of the company and the description of the merger agreement.