M*Modal Surges Over 8% on Buyout

Shares of M*Modal

are seeing increased strength during Tuesday's trading session after the company announced it will be acquired by One Equity Partners. One Equity Partners, the private investment arm of JP Morgan Chase, will acquire all of the outstanding shares of M*Modal for $14.00 per share in an all-cash transaction. The transaction is valued at approximately $1.1 billion. Under the terms of the agreement, which was unanimously approved by M*Modal's Board of Directors, M*Modal shareholders will receive $14.00 in cash for each outstanding share of M*Modal common stock they own representing an 8.3% premium over the closing price on July 2, 2012. The deal is expected to close during the third quarter of 2012. Currently, shares of M*Modal are trading up about 8.1 percent at $13.89 per share.