BSQUARE Corporation (NASDAQ:BSQR) shares shot 47% higher in Thursday premarket trading on news that Kontron America plans to buy the software technologies company for $1.90 per share in a cash transaction that values the company at $38 million.
The offer, which has been approved by the boards of both companies, comes at a 53% premium to Bsquare’s closing price on Wednesday and also represents a 62% premium to the trailing volume-weighted average price of the stock for the past year.
Kontron, a global Internet of Things (IoT) technology firm, said acquiring Bsquare will strengthen its software development, marketing and integration in North America.
“We expect strong synergies in cross-selling with our San Diego-based subsidiary,” Kontron CEO Hannes Niederhauser said in a statement.
“The Bsquare SquareOne product will be a good extension to our susietec software family.”
Bsquare president and CEO Ralph Derrickson said the acquisition provides liquidity for Bsquare shareholders while providing scale and efficiency for the business.
"Bsquare's business will combine naturally with Kontron's IoT hardware products and services to create a more complete solution for our customers,” Derrickson added.
The companies said Bsquare shareholders, as well as all its directors and executive officers holding about 17% of its shares, have agreed to tender them in the offer.
The deal requires the approval of two-thirds of the company’s shareholders.
Ahead of the opening bell, Bsquares shares were up $0.58 at $1.82.
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