: Tessco stock soars toward 2-year high after buyout deal at a more than 90% premium

Shares of Tessco Technologies Inc. TESS shot up 86.6% toward a two-year high in premarket trading Wednesday, after the wireless infrastructure company announced an agreement to be acquired by Alliance Corp. and GetWireless LLC in a deal reflecting a 91.5% premium. Under terms of the deal, Tessco shareholders will receive $9 in cash for each Tessco share they own, which compares with Tuesday’s closing price of $4.70. The stock hasn’t closed as high as $9 since February 2021. The deal price implies a market capitalization for Tessco of $83.1 million. After the deal closes, which is expected to occur in the third quarter of 2023, Tessco said it would maintain its facilities in Hunt Valley and Timonium, Maryland, and in Reno, Nevada. “The transaction price and premium reflect the success of our considerable turnaround efforts over the past three years, as well as Tessco’s current growth trajectory,” said Tessco Chief Executive Sandip Mukerjee. Tessco shares have lost 4.1% year to date through Tuesday, while the S&P 500 SPX has gained 7.0.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.