Forge Global Holdings (FRGE) was higher early Thursday, recently climbing almost 7%, after saying it made a non-binding offer to acquire all of the outstanding equity interests of privately held asset manager Accuidity through a merger transaction.
Under terms of the proposed acquisition, Forge would pay $10 million in cash and issue 1.15 million of its common shares at closing through a private placement transaction, which includes 483,333 shares to be held in escrow to cover stock previously awarded to Accuidity employees that is subject to vesting.
The term sheet also includes up to 1 million additional Forge shares payable to Accuidity stakeholders based on the company achieving certain operational and recurring revenue milestones through the end of 2027. Forge is expecting the deal, if completed, would be accretive to its per-share earnings and add new recurring revenue.
The offer also provides for an exclusive negotiating period between the companies, subject to Forge completing due diligence and meeting other closing conditions, including required regulatory approvals, it said.
Price: 9.24, Change: +0.60, Percent Change: +6.94
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