Why Arco Platform Stock Jumped on Friday
Shares of Arco Platform (NASDAQ: ARCE) trounced the market on Friday, jumping 15% by 3 p.m. ET. That's as compared to a flat result for the S&P 500. The boost was just enough to put the education software specialist back into positive territory for the year, although investors aren't seeing excellent returns to date. Arco shares are up roughly 2% in 2023 while the market has risen 16%.
Friday's rally was sparked by news that the company had struck a deal to go private.
Management said before the market opened that Arco Platform has agreed to be purchased for $14 per share in cash. Investors had known since late 2022 that the board of directors was reviewing its options from different bidders. Yet today's news puts a concrete price on the deal. The company will merge with an entity called Bidders' HoldCo.
Source Fool.com
