REZI - Why Snap One Holdings Stock Was Crushing It This Week
2024-04-19 08:05:32 ET
The stock of smart home products and services specialist Snap One Holdings (NASDAQ: SNPO) felt like a very smart investment this week. A premium-priced buyout deal sent the company's shares rocketing well higher in price, to the point where they had risen by 30% week to date before market open on Friday, according to data compiled by S&P Global Market Intelligence .
The new owner of Snap One is set to be home tech products maker Resideo Technologies (NYSE: REZI) . The two companies announced in a joint press release Monday that they agreed Resideo will purchase Snap One for $10.75 per share. The transaction will be effected fully in cash, and is valued at a total of roughly $1.4 billion inclusive of net debt .
That price was 32% above Snap One's closing level one trading day before the deal was made public. Friday morning, the company's share price was hovering just under $10.60, indicating at least some skepticism that the transaction would be completed, at least at the agreed price.
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Why Snap One Holdings Stock Was Crushing It This Week