Stamps.com, Inc. (STMP) stock prices were up by a marginal 0.36%, bringing it up to USD$197.72 as of the market closing on July 8th, 2021. Premarket fluctuations saw the stock skyrocket by 63.55%, bringing it up to USD$323.38.
Merger with Thoma Bravo
July 9th, 2021 saw the company announce that it had entered into a definitive agreement that would see it being acquired by the leading software investment firm, Thoma Bravo. As per the agreement, the transaction will be conducted entirely in cash, with STMP being valued at roughly USD$6.6 billion.
Details of the Merger
Stockholders of the company will receive USD$330 per share in cash, which represents an impressive 67% premium over the company’s closing share price on July 8th 2021. The premium represents a 71% increase from the company’s volume-weighted average closing share price over the three-month period ended July 8th, 2021.
Expanded Scope of STMP
Upon the closing of the transaction, STMP will become a private company with the added resources and increased flexibility to ensure the continued provision of best-in-class global e-commerce technology solutions. Furthermore, the company will benefit from the operating capabilities, capital support, and deep sector expertise of its partner.
Go-Shop Option
The agreement includes a 40-day period that will expire on August 18th, 2021, wherein the company is allowed to actively initiate, solicit, and consider alternative acquisition proposals from third parties. Should this be exercised, the Board will have the right to void the merger agreement in favor of entering a superior proposal. The transaction is expected to close in the third quarter of 2021, pending customary closing conditions, including, but not limited to stockholder approval and the receipt of regulatory approvals.
Benefits of the Merger
With the expanded financial and operational resources generated from the merger agreement, the company can continue capitalizing on more and more growth opportunities. STMP hopes to maximize market penetration in the e-commerce shipping market, while consolidating its position as a leader in global multi-carrier e-commerce shipping software. This position of leadership is evidenced by the company being the first of its kind to introduce online postage, as well as its having been an early innovator in e-commerce shipping software.
Future Outlook for STMP
Armed with the expansive potential of its pending merger with Thoma Bravo, STMP is poised to capitalize on the opportunities afforded to it in light of the combined pool of resources available to it. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to sustain the successful trajectory of growth over the long term.
