Bsquare Agrees To Be Taken Private By Kontron America In $38 Mln Deal; Stock Up

(RTTNews) - Bsquare Corp. (BSQR) agreed to be taken private by Kontron America, Inc. for $1.90 per share in an all-cash transaction, representing an implied equity value of about $38 million.

The deal price represents a 62% premium to the trailing 52-week volume weighted average of Bsquare's closing stock prices as of October 10, 2023.

BSQR closed Wednesday's regular trading at $1.24 up $0.06 or 5.08%. In the after-hours trading the stock further gained $0.55 or 44.35%.

Kontron will commence a tender offer for all outstanding shares of Bsquare. The deal has been approved unanimously by the board of directors of both companies.

In connection with the execution of the merger agreement, certain of Bsquare's shareholders, as well as each director and executive officer, holding approximately 17% in the aggregate of Bsquare's outstanding shares, entered into an agreement on substantially similar terms in which they agreed to tender all of their Bsquare shares in the tender offer.

The transaction is expected to close later in 2023.

After closing, Bsquare will become a privately held company, and shares of Bsquare common stock will no longer be listed on any public market.