Resonant shares more than tripled on Tuesday: explained here

Shares of Resonant Inc (NASDAQ: RESN) opened roughly 250% up on Tuesday after Murata Electronics North America Inc said it will buy the RF filter solutions provider for $4.50 per share in cash.

Deal to close by the end of March

Resonant had closed at $1.25 a share on Monday. Both companies have received approval for the deal from their respective boards. The transaction is likely to complete before April 2022, provided Resonant secures a nod from its shareholders.

The agreement will see Resonant become a wholly-owned subsidiary of Murata and open new avenues for future growth. In the press release, its CEO George Holmes said:

Resonant’s lead financial advisor for the deal is Centerview Partners.

President Norio Nakajima’s remarks

The $296 million acquisition is also subject to certain customary closing conditions, including regulatory approvals. Norio Nakajima – President of Murata also agrees the deal will help the Japanese firm serve its customers better and explore further opportunities.

Murata Electronics North America Inc is a subsidiary of Kyoto-headquartered Murata producer of electronic components, Murata Manufacturing Co Ltd. Its exclusive financial advisor for the deal is Mizuho Securities.

Murata shares closed more than 0.5% down on Tuesday.