The stock price of SPAR Group, Inc. (NASDAQ: SGRP) had an incredible increase on Tuesday, rising by 65.52% to close at $2.40 per share. The news of the acquisition proposal, which had a big influence on trade volumes and market confidence, caused this noticeable spike.
SPAR Group Unveiled Highwire Capital Acquisition Agreement
SPAR Group and Highwire Capital, an investment group committed to using technology to accelerate corporate change, have formally entered into a definitive acquisition agreement. The Board of Directors has approved this strategy change in full.
According to the agreement, shareholders of SPAR Group would get $2.50 in cash for each share, which is a substantial 72% premium over the share price that closed on the trading day before the announcement.
SGRP to Change from Public to Private Entity
After the sale closes, SPAR Group will be a privately held company, assuming approval from the investors and satisfaction of all closing requirements. Consequently, SGRP shares will no longer be listed on NASDAQ.
The completion of an extensive review process carried out by the company’s Special Committee and Board of Directors is expected to result in an immediate and substantial value delivery to investors. Finding strategic options that would increase shareholder value and give the business the financial flexibility needed for upcoming expansion projects was the goal of this analysis.
Transaction and Leadership Details
The deal is projected to finalize in the fourth quarter of 2024, pending regulatory approvals and stockholder consent. Highwire Capital has secured a debt financing commitment sufficient to complete the acquisition. Concurrently, William H. Bartels, a SPAR Group Board member and significant shareholder, has entered into a voting agreement and irrevocable proxy with Highwire.
Additionally, as a closing condition, SPAR Group will ensure a minimum balance sheet cash of $14.2 million, including anticipated proceeds from the disposal of any company assets. Following the transaction’s closure, Mike Matacunas, who has served as President and CEO since early 2021, will continue to lead SPAR Group.
