Tivity Health Posting Steep Loss After Agreeing To Acquire Nutrisystem

(RTTNews) - After falling sharply early in the session, shares of Tivity Health, Inc. (TVTY) continue to see substantial weakness in afternoon trading on Monday. Tivity Health is currently down by 30.5 percent after hitting its lowest intraday level in well over a year.

The early sell-off by Tivity Health came after the provider of fitness and health improvement programs announced an agreement to acquire weight loss company Nutrisystem, Inc. (NTRI).

Under the terms of the agreement, Nutrisystem shareholders will receive $38.75 per share in cash and 0.2141 Tivity Health shares for each share of Nutrisystem common stock.

The transaction values Nutrisystem at an enterprise value of $1.3 billion and an equity value of $1.4 billion, or approximately $47 per share.