Couchbase (NASDAQ: BASE) stock is seeing a huge jump in Friday's trading following news of a buyout for the company. The software specialist's share price was up 30% as of 3:25 p.m. ET.
Before market open this morning, Couchbase published a press release announcing that it had entered into an agreement to be acquired by Haveli Investments. The deal will see Couchbase acquired at a $1.5 billion valuation, representing a 29% premium compared to the company's price at market close on June 18.
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Couchbase stock rockets higher on buyout
With the company valued at $1.5 billion in the acquisition, shareholders will receive $24.50 per share as part of the all-cash buyout. Couchbase will become a privately held company after the deal is completed. The company says that the buyout is expected to close before the end of this month, and Haveli indicated that Couchbase's strengths in artificial intelligence (AI) development tools was a key factor in its acquisition move.
What's next for Couchbase stock?
Couchbase says that the acquisition agreement includes a "go-shop" period, which will allow the company to explore other buyout offers before 11:59 p.m. ET on June 23. While this potentially leaves the door open for another suitor to come in with a higher buyout offer, it's also an extremely short window for another potential buyer to come in with their own buyout terms.
Couchbase's press release for its acquisition by Haveli Investments suggests that it's extremely likely that the purchase will be completed after this coming Monday. As of this writing, the company's share price has risen to be roughly in line with the scheduled buyout price -- which suggests that there's very little reason for new investors to enter the stock at this point.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.