ARCE - Arco Platforms jumps after agreeing to $14/share take private deal

2023-08-11 09:26:24 ET

Arco Platforms ( NASDAQ: ARCE ) soared 14% in premarket trading after the Brazilian education software company agreed to a $14 per share takeover.

Private equity firms General Atlantic and Dragoneer Investment Group agreed to purchase all shares of Arco ( ARCE ) not held by founders Oto Brasil de Sá Cavalcante and Ari de Sá Cavalcante Neto, according to a statement on Friday.

The deal comes after the two private equity firms first offered to buy Arco ( ARCE ) in late November for $11 per share in cash. The buyer group raised its price to $13 a share in early May, and the final price of $14 represents a 55% premium to Arco's price on Nov. 30, before the first offer was announced.

The deal will be funded through a combination of cash contributions from the bidders pursuant to equity commitment letters and equity rollovers by the founders, the bidders, and then rollover shareholders of common shares they beneficially own in the company.

The deal is expected to close in Q4 of 2023 or Q1 of 2024.

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