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RESN Stock Alert: 5 Things to Know About the Deal Sending Resonant Up 250%

Resonant (NASDAQ:RESN) stock is up a whopping 250% today on news that the company is being acquired at a hefty premium.
Source: Shutterstock.com
So what do you need to know about the deal?
To start, Resonant is a company that specializes in r…

Resonant (NASDAQ:RESN) stock is up a whopping 250% today on news that the company is being acquired at a hefty premium.

Source: Shutterstock.com

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So what do you need to know about the deal?

To start, Resonant is a company that specializes in radio frequency products. Murata Electronics North America, a subsidiary of  Murata Manufacturing (OTCMKTS:MRAAY), is paying $4.50 a share in cash to acquire all outstanding RESN stock. That represents a 265% premium over Resonant stock’s Feb. 14 closing price of $1.23 a share.

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Following the deal’s conclusion, Resonant will become a wholly owned subsidiary of Kyoto, Japan-based Murata. It will sustain its primary radio frequency business, the companies said in a joint news release.

Here are five things to known about the deal that will see Murata acquire Resonant.

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Five Things to Know About the RESN Stock Deal

  • Resonant is based in Austin, Texas. It works to innovate the design of radio frequency for mobile phones and other wireless devices.
  • Both companies’ board of directors have already approved the deal and it is expected to close quickly, by the end of March 2022.
  • Murata Manufacturing has been in business since 1944. It specializes in making electronic components and has a leading global market share in ceramic filters and sensors.
  • In December 2020, Murata announced the opening of a new research and development center dedicated to automotive electronics and applications in its native Japan.
  • Resonant and Murata had a strategic partnership in place before today’s acquisition was announced, and had expanded that partnership as recently as last fall.
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    On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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