Arco Platform Agrees To Go Private Via $1.5B Merger Deal
Portfolio Pulse from Shivani Kumaresan
Arco Platform Ltd (NASDAQ:ARCE) has agreed to a merger with Achieve Holdings and Achieve Merger Sub, a subsidiary of Bidders' HoldCo. Investment entities affiliated with General Atlantic L.P. and Dragoneer Investment Group, LLC will acquire all outstanding shares of ARCE for $14.00 per share in cash, a 55% premium over the closing price of $9.04 on November 30, 2022. The enterprise value of the acquisition is about $1.5 billion. The merger is expected to close in Q4 2023 or Q1 2024.
August 11, 2023 | 10:11 am
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Arco Platform's merger with Achieve Holdings and Achieve Merger Sub is expected to have a positive impact on its stock price in the short term. The acquisition price of $14.00 per share represents a 55% premium over the closing price of $9.04 on November 30, 2022.
The acquisition price of $14.00 per share is significantly higher than the closing price of $9.04 on November 30, 2022. This premium is likely to drive the stock price up in the short term as investors react to the news of the merger. Furthermore, the backing of investment entities affiliated with General Atlantic L.P. and Dragoneer Investment Group, LLC adds credibility to the deal, which could further boost investor confidence.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100