On February 14, Resonant Inc. (RESN) announced a definitive agreement with Murata Electronics North America Inc., for the acquisition of all outstanding shares of the company. Consequently, the stock skyrocketed in the after-hours as investors gladly welcomed the business combination news with Murata.
The regular trading session was just a normal session for the stock where it lost 0.81% at the closing price of $1.23 per share. However, the after-hours session proved extremely fruitful as RESN rallied by a huge 247.15%. The stock traded at a heavy volume of 1.07 million in the after-hours to reach $4.27 per share just below the proposed acquisition price of $4.25.
Resonant Inc. creates filter designs for radio frequency front-ends for the mobile industry. Currently, the company has a market capitalization of $81.48 million with 65.71 million outstanding shares.
RESN’s Agreement with Murata
According to the agreement, Murata Electronics North America, Inc. will acquire all outstanding shares of RESN that are not already owned by Murata for $4.50/share in cash.
Murata Electronics North America, Inc. is a wholly-owned subsidiary of Murata Manufacturing Co. Ltd.
Following the combination, the company will become a wholly-owned subsidiary of Murata. This combination will result in the expansion of the offerings of both the companies along with access to additional markets and customers. Moreover, the companies have previously been working together through multiple collaborations and licenses. This combination will lead to the deepening of their partnership for better serving the customers.
As approved by the boards of both companies, the transaction is expected to close near the end of March 2022.
Recent Developments
Recently, on January 11, the company shared the highlights of its Intellectual Property Portfolio. RESN has expanded its IP portfolio exponentially with more than 415 filed or issued patents. Out of these 265 are focused on XBAR® (BAW) Technology. Thus, the company has been recognized as one of the three leading BAW Filter innovators since the start of 2020.
On January 13, the company’s management presented at the 24th Annual Needham Growth Conference. Further, the conference took place virtually from January 10 to January 14, 2022.
RESN’s Financial Overview
In the third quarter of 2021, the company reported revenues of $0.4 million, and a net loss of $9.0 million. The net loss per basic and diluted share in Q3 2021 was $0.14.
Additionally, RESN ended the third quarter of 2021 with cash and cash equivalents of $15.3 million.
