VRTU - Why Virtusa Stock Just Jumped 24%
Shares of IT consultant Virtusa (NASDAQ: VRTU) are up 23.8% in 9:55 a.m. EDT trading on news that private equity firm Baring Private Equity Asia (BPEA) will acquire the company in a merger transaction valued at $2 billion.
BPEA will pay $51.35 cash to acquire all outstanding shares of Virtusa. In a statement, Virtusa confirmed that its board has unanimously endorsed the bid as the best out of roughly a half-dozen offers received to acquire the company over the past two months.
Thanks to the premium contained in BPEA's bid, Virtusa stock has now erased all of its losses over the past year and returned shareholders to roughly breakeven.