Shares of wireless communication equipment distributor Tessco Technologies (NASDAQ:TESS) nearly doubled in today’s trading session. This can be attributed to a merger agreement with Lee Equity Partners and Twin Point Capital. Under the agreement, the entities will acquire all outstanding shares of the company for $9.00 in cash, totaling $161.4 million. The merger is expected to close in the third quarter of 2023.
After the merger, Tessco will partner with Alliance and GetWireless to create a leading telecommunications distributor in North America. According to Ron Moss, CEO of Alliance, the merger is a strategic move to meet the increasingly complex needs of the wireless telecommunications industry. Tessco’s top-notch management team, technical competence, and strong supplier relationships will complement the portfolio of products and services offered by Alliance and GetWireless. The partnership is expected to benefit customers by providing a comprehensive range of high-quality products and services.
A look at the past six months highlights the significant impact that today’s news had on TESS stock. Indeed, shares mostly traded sideways as they hovered between $4 to $5 per share. Nevertheless, the acquisition has pushed the stock price to the high-$8 range, resulting in a gain of 105.74% over the trailing six-month period.
