Planet Payment Inc (NASDAQ:PLPM)
Planet Payment Inc (NASDAQ:PLPM) shares have gained two days in a row after eleven straight days of declines. Volume was especially heavy on Friday when the trading volume was almost 100 times the 30-day, daily average after an acquisition offer from the Fintrax Group was announced.
Fintrax Acquisition Offer
For almost a year, PLPM shares have faced stiff resistance every time they close in on the $4.50 level. With that in mind, traders reacted quickly to the news that Planet Payment Inc (NASDAQ:PLPM) had agreed to be acquired at $4.50 per share by Fintrax Group, an Ireland-based, multi-currency digital payment processing service that caters to the tourist industry. Shares traded in a tight $0.19 range and closed at $4.47.
Long Beach, NY-based Planet Payment Inc (NASDAQ:PLPM) develops and commercializes online payment systems globally. The company’s systems provide a connection between the merchant, its bank, and the card association. Some of Planet Payment’s services include multi-currency processing services, such as Pay in Your Currency, a point-of-sale dynamic currency conversion service. The company also provides the Planet Payment Gateway, a service that provides domestic and multi-currency processing services, global consolidated reporting, data analytics, and commercial transaction services.
Opinion of the deal
Patrick Waldron, Chief Executive Officer of Fintrax Group said, “The acquisition of Planet Payment will expand our ability to serve global customers, particularly in the US, Canada, the Middle East, Latin America, China and South-east Asia. We look forward to working with Carl Williams and his team to grow the combined business.”
Almost immediately after the acquisition terms were announced, law firms questioned the deal and issued press releases announcing their intention to investigate possible breaches of fiduciary duties and other violations of law related to the Company’s entry into the acquisition agreement.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.