Procore Technologies extends rally after upsized convertible for DroneDeploy buy

Procore Technologies

04/08/2026 15:36

** Construction management software firm Procore Technologies PCOR.N shares up 2.1% to $56.43 on Tues after above-target raise for acquisition
** PCOR on course to rise for eighth straight session, racking up about 37% gain along the way
** Carpinteria, California-based co early Tues announced pricing private offering of $825 mln 0% convertible bonds (CBs) due Aug 15, 2031
** Offering size boosted from $750 mln; initial conversion price of $82.89 is 50% premium over stock's last sale of $55.26 on Mon
** Co intends to use net offering proceeds to fund $845 mln cash buy of robotics and visual intelligence platform DroneDeploy, which it announced last week
** It also plans to use $51.3 mln of proceeds to pay cost of capped calls and $175 mln to repurchase its shares to facilitate hedging transactions by investors in the CBs
** With the advance, PCOR down ~22% YTD
** Avg rating of 25 brokerages covering the stock is "buy"; median PT $68, per LSEG data
     

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