B Riley makes an offer for Spok
B Riley Financial has signed a letter of intent to acquire Spok Holdings, a leader in healthcare communications for USD 227.28 million.
Under the terms of the proposal, the buyer is offering USD 12.00 per share in cash, representing a premium of 38.6 per cent to the target’s close of USD 8.66 on 16th March 2020, the last trading day prior to the announcement.
Spok’s stock price closed up 33.4 per cent to USD 11.55 yesterday, giving the group a market capitalisation of USD 218.81 million.
The company’s board intends to evaluate the letter with independent financial and legal advisors; however, the firm cautioned there is no guarantee the deliberations will lead to an agreement being reached and shareholders should not take action at this time.
Spok is working with RBC Capital Markets, Spotlight Advisors and Latham & Watkins.
B Riley is looking to tap the healthcare market by offering to buy the company, in which it already owns 500,000 shares, or a 2.6 per cent stake.
Spok is headquartered in Virginia and is a global leader in healthcare communications, delivering clinical information to teams to improve patient outcomes.
The group counts 2,200 top hospitals among its clients, with customers sending over 100.00 million messages each month through the company’s platform.
In the year ended 31st December 2019, Spok recorded total revenue of USD 160.29 million, down slightly from USD 169.47 million in the previous 12 months.
The firm incurred a loss on earnings before interest, taxes, depreciation and amortisation (EBITDA) of USD 6.56 million in 2019; EBITDA stood at USD 7.60 million in 2018.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 114 deals targeting telecommunications providers announced worldwide in 2020 so far.
In the largest of these to date, Brookfield Infrastructure Partners made a fourth attempt to acquire Cincinnati Bell and said it will not increase the offer of USD 2.85 billion for the company again.
The second-biggest deal is a rival bid for the US-based data services company by Macquarie Infrastructure Partners worth USD 2.71 billion.
© Zephus Ltd