The stock of InnerWorkings, Inc. INWK closed Thursday's session higher by 115% at $2.85 per share.
What Happened: HH Global announced Thursday morning that it will acquire InnerWorkings for $3 per share in an all-cash transaction representing approximately $177 million in equity value. This represents a premium of 127% to the previous day's closing price.
"Over the past several months, we’ve been taking actions to put InnerWorkings in the best position to weather the challenging environment in which we’re operating," said CEO Rich Stoddart.
"...After exploring a range of financing and strategic alternatives, and implementing meaningful cost saving measures in response to the COVID-19 pandemic, we’re confident this combination represents the best path forward for our shareholders and InnerWorkings."
Why It's Important: InnerWorkings engineers marketing for brands across a wide range of industries.
"Together, the two companies will have a stronger operating model and balance sheet and will be well-positioned to continue InnerWorkings’ transformation and to build and maintain long-term client relationships as a true first-choice partner for leading brands," the press release said. "In addition, the combined company will benefit from the support of funds managed or advised by Blackstone Tactical Opportunities, an existing strategic minority equity investor in HH Global."
What's Next: The transaction is expected to be completed before the end of the fourth quarter of 2020.
InnerWorkings has a market cap of $150 million. The stock's 52-week high is $5.81 and its 52-week low is 87 cents per share.
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