On Tuesday, Baird downgraded Thoughtworks Holding (NASDAQ:TWKS) stock from Outperform to Neutral. This rating change comes as the company's stock price approached the announced acquisition price.
Thoughtworks, a global technology consultancy firm, has agreed to be acquired by private equity firm Apax Partners for $4.40 per share. The deal, which values the company at approximately $1.75 billion, was made public on Tuesday.
The acquisition is expected to be finalized in the fourth quarter of 2024, pending the satisfaction of customary closing conditions. An affiliate of the Apax funds, which currently holds a majority stake in Thoughtworks with approximately 61.3% of the shares as of December 31, 2023, has approved the transaction. As a result of this majority approval, no further stockholder votes are necessary to move forward with the deal.
The revised price target of $4.40 aligns with the per-share buyout price offered by Apax Partners. This price reflects a definitive agreement between the parties and represents the value that shareholders can expect to receive once the transaction is completed.
The news of the acquisition has led to a rally in Thoughtworks' stock, bringing it close to the takeover price, which prompted the analyst at Baird to adjust the stock's rating and price target. The transaction is now in progress, with the expectation that it will proceed smoothly given the majority stakeholder's approval.
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