Why Information Technology Model N Shares Are Surging Today
Portfolio Pulse from Lekha Gupta
Model N, Inc. (NYSE:MODN) shares surged after announcing Vista Equity Partners will acquire it for $1.25 billion, or $30.00 per share, a premium over its recent average share price. The deal, expected to close in mid-2024, will make Model N a private company. Investors can gain exposure to MODN through SPDR S&P Software & Services ETF (NYSE:XSW) and First Trust Multi-Manager Small Cap Opportunities ETF (NYSE:MMSC). MODN shares are up 10.13% at $29.83.
April 08, 2024 | 3:15 pm
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POSITIVE IMPACT
First Trust Multi-Manager Small Cap Opportunities ETF (MMSC) offers exposure to Model N, benefiting from the acquisition news.
MMSC, which includes Model N in its holdings, is likely to experience a positive short-term impact due to the premium acquisition price of Model N, reflecting positively on the ETF's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Model N shares surged following the acquisition announcement by Vista Equity Partners for $1.25 billion, or $30.00 per share.
The acquisition announcement has led to a significant surge in Model N's stock price due to the premium offered over its recent average share price. The transition to a private company post-acquisition further impacts its stock dynamics in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
SPDR S&P Software & Services ETF (XSW) offers exposure to Model N, which has seen a surge in share price due to the acquisition announcement.
As XSW provides exposure to Model N, the ETF might see a positive impact in the short term due to the acquisition news and the resultant surge in MODN's share price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50