Softchoice’s shares surged Tuesday after the Canadian software company agreed to be bought by World Wide Technology in a deal implying an enterprise value of 1.8 billion Canadian dollars ($1.25 billion).
In morning trading, the shares were 13% higher at C$24.24, widening the advance over the last 12 months to 57%.
Softchoice reached a definitive agreement with the St. Louis, Mo., -based technology company that will see holders offered C$24.50 a share in cash, a 15% premium to the last closing price.
Softchoice shareholders including its directors and senior officers and Birch Hill Equity Partners, which collectively account for a little more than 51% of the issued and outstanding shares, have agreed to support the offer from World Wide Technology.
If the takeover is completed, Softchoice expects to be delisted from the Toronto Stock Exchange.