Shares of NIC Inc.
EGOV,
shot up 15.4% toward a 21-year high in premarket trading Wednesday, after the digital government solutions and payments company agreed to be acquired by Tyler Technologies Inc.
TYL,
in a cash deal valued at $2.3 billion. Tyler’s stock slipped 0.7% ahead of the open. Under terms of the deal, NIC shareholders will receive $34 in cash for each NIC share they own, which represents a 14.1% premium to Tuesday’s stock closing price of $29.81. The deal is expected to close in the second quarter of 2021. Tyler said it expects to fund the deal with $700 million of cash on its balance sheet and $1.6 billion in new debt. “The pandemic has accelerated the shift by governments to online services and electronic payments as more citizens and businesses are interacting digitally with government,” said Tyler Chief Executive Lynn Moore. “NIC is uniquely positioned with its deep expertise and robust digital solutions to partner with us in making government more efficient and more accessible to citizens.” NIC shares, which are on track to open at the highest price seen during regular-session hours since March 2000, have rallied 23.7% over the past three months through Tuesday, while Tyler’s stock has edged up 2.0% and the S&P 500
SPX,
has gained 10.3%.
