Dynatrace up after $1.25 bln convertible offering prices

Dynatrace

18/08/2026 11:44

** AI-powered cloud monitoring software provider Dynatrace DT.N shares up 1.2% at $48.18 before the bell on Tues after clinching capital raise
** Boston, Massachusetts-based firm announces pricing private offering of $1.25 bln 0% exchangeable notes due Sept 1, 2031
** Exchange price of $64.27 represents 35% premium over stock's last sale of $47.61 on Mon
** DT shares fell 3% on Mon after co unveiled the offering for general corp purposes
** It intends to use approx $145.9 mln of net proceeds to pay cost of hedge transactions, and expects to use approx $134.7 mln to repurchase 2.83 mln shares from certain purchasers of the notes
** Offering comes a week after DT agreed to acquire AI observability platform Arize for $915 mln, comprising $815 mln in cash and equity awards to Arize employees
** Through Mon, DT shares up ~19% over the past three months, putting them up ~10% YTD
** Avg rating of 36 analysts is "buy"; median PT $60, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))