Alkami Tech falls on planned $300 mln convertible financing for acquisition

Alkami Technology

10/03/2025 13:19

** Shares of digital banking firm Alkami Technologies Inc ALKT.O down 6.7% before the bell to $25.48 after acquisition-related capital raise news

** Plano, Texas-based firm offering privately $300 mln 5-yr convertible bonds

** It plans to use portion of net proceeds to pay for capped calls, fund previously announced pending acquisition of MANTL

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

** Co has ~$2.8 bln market cap, per LSEG data

** Through Fri close, shares off ~26% YTD following ~51% gain in 2024

** 8 of 11 analysts covering ALKT rate stock "strong buy" or "buy", rest "hold"; median PT of $45 is 65% above stock's last close - LSEG

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

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