Rover’s stock rockets after $2.3 billion cash buyout deal with Blackstone

Shares of Rover Group Inc.
ROVR,
+28.94%
rocketed 27.1% in premarket trading, putting them on track for a record one-day gain, after the online pet-care marketplace announced an agreement to be acquired by Blackstone Inc.
BX,
+3.47%
in a cash deal valued at $2.3 billion. Under terms of the agreement, Rover shareholders will acquire $11 in cash for each Rover share outstanding, which represents a 29.4% premium to Tuesday’s closing price of $8.50. The stock hasn’t closed at or above $11 since Dec. 9, 2021. The deal, which is expected to close in the first quarter of 2024. includes a “go-shop” period that expires on Dec. 29 that Rover can solicit other buyout proposals. Rover’s stock has soared 131.6% year to date through Tuesday, while the S&P 500
SPX,
-0.09%
has rallied 18.6%.