Why UserTesting (USER) stock is soaring today? Find out here

2 min read | October 27, 2022 06:01 AM PDT | By Rupam Roy

Why UserTesting (USER) stock is soaring today? Find out here — Image source: © Shutter999 | Megapixl.com

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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Bottom line:

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.

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