Mimecast stock rose more than 6% on Tuesday, reaching the $80 threshold that private equity firm Permira is willing to pay to take the company private.
Mimecast stated that it has the ability to terminate the agreement with Permira if a superior proposal is received.
The contract includes a 30-day "go-shop" period that ends on January 6. During this time, an independent special committee and its advisors will actively initiate and assess purchase ideas, and potentially enter into negotiations with any parties who provide superior options, according to the corporation.
In the current session, the stock has reached a high of $80.25.
Mimecast is valued at $5.8 billion in the all-cash merger with Permira. This deal is expected to be completed in the first half of 2022.
Mimecast's revenue increased 20% year on year to $147 million in the second quarter. The adjusted earnings per share increased from 29 cents in the second quarter of last year to 40 cents in the second quarter of this year. The company expects revenue in the current quarter to range between $149.2 million and $150.7 million.