- UserTesting announced entering into a definitive agreement to be acquired by Thoma Bravo and Sunstone Partners.
- The USER stock jumped over 95 per cent soon after the opening bell on Wall Street.
- UserTesting reported its Q3 FY22 earnings results today.
The stocks of the software and technology firm, UserTesting, Inc. (NYSE: USER) were among the top percentage gainers in the early trading hours on Thursday, October 27, as evidenced by the significant jump in its price.
The price of the USER stock soared over 95 per cent soon after Wall Street opened on Thursday, following its two key announcements. The company announced its latest acquisition news just before releasing its financial results for the latest quarter.
Let's look at the recent announcements of the firm with Kalkine Media® for more insights:
All about the acquisition
UserTesting is a software company that offers its services to the UI, UX Research, and other related industries to improve the digital experience.
The company said on Thursday, that it has entered into a definitive agreement to be acquired by tech-focused private equity firms, Thoma Bravo and Sunstone Partners.
The all-cash transaction would be valued at around US$ 1.3 billion at US$ 7.50 per share, which represents a premium of around 94 per cent over USER stocks' closing price of October 26.
Considering the volume-weighted average price (VWAP) of USER stock for the last 30 trading days through October 26, it represents a premium of about 97 per cent.
According to the release, Thoma Bravo and Sunstone Partners plan to combine UserTesting and UserZoom following the close of the transaction. Notably, the majority control of UserZoom is already with Thoma Bravo since April this year.
The current Chief Executive Officer of UserTesting, Andy MacMillan would continue to lead the combined entity after the closing of the deal.
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The price of the USER stock rose 95.73 per cent at 9:32 am ET on October 27, to trade at US$ 7.555, and its volume was around 4.78 million. Its prior close was US$ 3.86.
According to its earnings release on October 27, UserTesting's revenue was up 28 per cent YoY to US$ 49.4 million in Q3 FY22, and its net loss was US$ 15.2 million, compared to a loss of US$ 9.6 million in Q3 FY21.