Ellie Mae shares up 19% premarket after resuming trade following halt

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UPDATE: Ellie Mae to be acquired by Thoma Bravo in deal with equity value of about $3.7 billion, shares soar

Ellie Mae Inc. shares soared 19% in premarket trade Tuesday after the company said it has agreed to be acquired by private-equity firm Thoma Bravo in a deal with an equity value of about $3.7 billion. Under the terms of the agreement, Thoma Bravo will pay Ellie Mae shareholders $99 in cash per share, equal to a 47% premium over the 30-day average closing share price and 49 percent premium to the 60-day average closing price as of February 1, 2019. Ellie Mae is a cloud-based platform provider for the mortgage finance industry that was set up more than 20 years ago. Ellie Mae will remain headquartered in Pleasanton, California. The deal is expected to close in the second or third quarter. The agreement includes a 35 day “go-shop” period, under which Ellie Mae can seek superior bids. Shares have fallen 5.3% in the last 12 months, while the S&P 500 has gained 2.0%.

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