Alkami Tech extends decline after $300 mln convertible offering priced

Alkami Technology

11/03/2025 14:14

** Shares of digital banking firm Alkami Technologies Inc ALKT.O down 1% at $23.62 early Tues after securing capital raise to finance acquisition

** ALKT shares. which are falling for 4th straight session, lost nearly 13% on Mon amid broader retreat in equities

** Plano, Texas-based firm late Mon announced pricing private offering of $300 mln 1.5% 5-yr convertible bonds

** Initial conversion price of $32.82 represents 37.5% premium to stock's last close

** Co plans to use ~$29.5 mln of net offering proceeds to pay for capped calls, remainder to fund previously announced pending acquisition of MANTL

** On Feb 27, co said it would buy Fin Technologies (MANTL), an account opening solution, for $400 mln enterprise value, and announced Q4 results and 2025 outlook

** Co has ~$2.4 bln current market cap, per LSEG data

** With move on the session, shares off ~36% YTD following ~51% gain in 2024

** 8 of 11 analysts covering ALKT rate stock "strong buy" or "buy", rest "hold"; median PT of $45 implies ~90% upside to current levels - LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))