Canadian cloud computing firm Softchoice Corp. (SFTC) is being acquired by privately held U.S.-based World Wide Technology in an all-cash deal valued at $1.8 billion ($1.3 billion U.S.).
Softchoice said in a news release that the deal values it at $24.50 per share. The agreement also comes with a $49 million termination fee.
Softchoice, which specializes in cloud-computing, will delist from the Toronto Stock Exchange once the deal is finalized in the first half of this year.
Softchoice went public in May 2021 at $20 per share. After running up to $40 a share in August of that year, the stock plunged nearly 65% to trade around $14.50 a share.
The company’s share price rose 13% on news of the deal and is now trading right around its acquisition price of $24.50.
World Wide Technology is a private company and its stock does not trade on a public exchange.