Duff & Phelps Corp (NYSE:DUF) is expected to be acquired by a group of investors, which includes the private-equity firm Carlyle Group LP (NASDAQ:CG), Stone Point Capital LLC, the Swiss bank Pictet & Cie. and Europe-based Edmond de Rothschild Group. The deal is expected to cost approximately $665.5 million or about $15.55 per share.
This deal is a 19 percent premium on Friday’s closing price of the company’s stock, which is in line with premarket trading this morning. Shares of the company’s stock skyrocketed more than 19 percent in premarket trades as a result of the news, which was released Sunday. Shares of Duff & Phelps Corp (NYSE:DUF) have fallen about 10 percent in a year, so today’s premarket gains have erased that drop and added to the stock’s value.
The bid offers a “go-shop” period, which ends on Feb. 8 and allows Duff & Phelps to seek and receive more acquisition proposals. If the company does receive a bid higher than the current offer, it will pay a $6.65 million break-pup fee.
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According to Bloomberg, the buyers who will acquire Duff & Phelps Corp (NYSE:DUF) are significant because they are all optimally placed to help the business in its international growth. Bloomberg economists expect Duff & Phelps’ revenue to increase 17 percent this year, while The Wall Street Journal reports that Duff & Phelps Corp (NYSE:DUF) has increased its profits and revenue this year through its global restructuring advisory unit, mergers and acquisitions unit. The company has acquired a number of businesses in the U.S., Canada and the U.K.