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

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

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By Tomi Kilgore

Boingo Wireless Inc. /zigman2/quotes/204664548/composite WIFI -0.07% 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 /zigman2/quotes/210599714/realtime SPX +0.23% has gained 4.1%.

US : U.S.: Nasdaq
$ 13.96
-0.0100 -0.07%
Volume: 189,973
May 6, 2021 3:19p
P/E Ratio
Dividend Yield
Market Cap
$625.17 million
Rev. per Employee
+9.73 +0.23%
Volume: 1.56B
May 6, 2021 3:21p

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