Technology

Are inContact Stockholders Getting Enough in the Buyout?

Chris Lange

Published: May 18, 2016 10:45 am

Last Updated: January 13, 2020 7:53 am

inContact Inc. (NASDAQ: SAAS) saw its shares make an incredible jump on Wednesday’s trading session following news of an acquisition. The company announced that it entered a definitive agreement to be acquired by NICE Systems Ltd. (NASDAQ: NICE).

Under the terms of the agreement, inContact stockholders will receive $14.00 per share in cash. The per-share purchase price represents a 55% premium to the closing price on May 17, 2016, the last trading day prior to the announcement of the transaction, and a 49% premium to the 30-day volume-weighted average price. Compared to the 200-day moving average ($8.67), the merger premium comes out to 60%.

The InContact’s board of directors unanimously approved the transaction. However, it is still subject to regulatory approval, stockholder approval and other customary closing conditions. The transaction is expected to close in the second half of 2016.

According to inContact, this acquisition ushers in a new era in customer service, where two leading companies are joining forces to provide the industry’s first fully integrated cloud contact center solution suite.

Paul Jarman, chief executive officer of inContact, commented:

We strongly believe that this transaction best positions the Company to execute on our vision of helping our customers deliver exceptional customer experiences, while rewarding our existing stockholders for the work we have achieved to date. We are excited to work with our new business partners at NICE and enter our next chapter of industry leadership.

Barak Eilam, CEO of NICE, added:

We look forward to working with the talented management team and employees to accelerate inContact’s customer relationships and strengthen its market position in cloud contact center software. We worked hard to make this deal happen because we understand the tremendous value that inContact can bring to its customers and the marketplace. This combination creates the deepest and most talented R&D, services and support organization in our industry, allowing us to accelerate our roadmaps and deliver even greater value to our customers.

Shares of inContact traded up about 54% at $13.88 on Wednesday, with a consensus analyst price target of $12.83 and a new 52-week trading range of $6.25 to $13.92.