RESN - Resonant shares more than tripled on Tuesday: explained here
Shares of Resonant Inc ( NASDAQ: RESN ) opened roughly 250% up on Tuesday after Murata Electronics North America Inc said it will buy the RF filter solutions provider for $4.50 per share in cash.
Deal to close by the end of March
Resonant had closed at $1.25 a share on Monday. Both companies have received approval for the deal from their respective boards. The transaction is likely to complete before April 2022, provided Resonant secures a nod from its shareholders.
The agreement will see Resonant become a wholly-owned subsidiary of Murata and open new avenues for future growth. In the press release , its CEO George Holmes said:
Murata’s leading products with our XBAR filter technologies will advance our combined ability to deliver best-in-class products to the RF front-end market. We’re looking forward to accelerating integration of our XBAR technology into the Murata RF roadmap and delivering solutions with optimum RF performance.
Resonant’s lead financial advisor for the deal is Centerview Partners.
President Norio Nakajima’s remarks
The $296 million acquisition is also subject to certain customary closing conditions, including regulatory approvals. Norio Nakajima – President of Murata also agrees the deal will help the Japanese firm serve its customers better and explore further opportunities.
We’ve collaborated with Resonant for years on development of proprietary circuit designs using its XBAR technology, and Resonant licensed to Murata rights for products in multiple specific radio frequencies. We’re confident Resonant’s innovation is a key strategic differentiator for the mobile industry.
Murata Electronics North America Inc is a subsidiary of Kyoto-headquartered Murata producer of electronic components, Murata Manufacturing Co Ltd . Its exclusive financial advisor for the deal is Mizuho Securities.
Murata shares closed more than 0.5% down on Tuesday.
The post Resonant shares more than tripled on Tuesday: explained here appeared first on Invezz .