American Renal Associates shares skyrocket 70% premarket on news of take-private bid

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American Renal Associates Holdings Inc. shares jumped 70% in premarket trade Friday, after the provider of outpatient dialysis services said it has reached an agreement to be acquired by private-equity firm Nautic Partners in a deal with an enterprise value of about $853 million. Under the terms of the deal, American Renal Associates shareholders will receive $11.50 per share in cash, equal to a premium of about 66% over the company’s closing price on Oct. 1. The deal is expected to close in the first quarter of 2021, but it includes a 40-day “go-shop” period, during which ARA’s board can solicit alternative offers. Shares have fallen 33% in the year through Thursday, while the S&P 500 has gained 4.6%.
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