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New York Markets After Hours

March 1, 2021, 9:13 a.m. EST

Boingo Wireless stock set to soar after Digital Colony buyout deal for a 23% premium

Boingo Wireless Inc. (NAS:WIFI) announced Monday an agreement to be acquired by Digital Colony Management in a deal valued at $854 million, including debt. The stock was up 18.3% in premarket trading prior to a trading halt for new, which extends to 9:50 a.m. Eastern. Under terms of the deal, Boingo shareholders will receive $14 in cash for each Boingo share they own, representing a 22.8% premium to Friday's stock closing price of $11.40. The buyout price implies a market capitalization for Boingo of about $623.4 million. Separately, Boingo reported a 2020 net loss that widened to $17.1 million, or 38 cents a share, from $10.3 million, or 23 cents a share, a year ago. Revenue fell 10% to $237.4 million. The FactSet consensus for net per-share losses was 38 cents and for revenue was $236.9 million. The stock has tumbled 19.7% over the past three months through Friday, while the S&P 500 (S&P:SPX) has gained 4.1%.

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