Eargo rises on a $53-million merger deal with Patient Square Capital

Eargo

30/10/2023 12:53

(Updates)
    ** Eargo Inc's shares  EAR.O  rise 45.2% to $2.44 premarket,
reversing course from as much as a 10% decline earlier in the
session
    ** Stock among the biggest pct. gainer on U.S. stock
exchanges 
    ** The medical device maker said it has entered into a
merger agreement with healthcare investment firm Patient Square
Capital in a $53 million all-cash deal
    ** On completion, Eargo will become a private firm and will
receive $2.55 per share, representing a nearly 52% premium on
the stock's last close 
     ** EAR's board has approved the transaction and determined
it was in the best interest of its shareholders - co
    ** Transaction expected to close in Q1 2024 
    ** Perella Weinberg Partners LP is acting as financial
advisor
    ** Up to Friday's close, EAR had fallen ~85% YTD

 (Reporting by Khushi Mandowara in Bengaluru)
 ((Khushi.Mandowara@thomsonreuters.com;))