Streamline Health Solutions (STRM) stock surged on Thursday after the healthcare technology company announced a merger agreement with cloud-based continuous risk monitoring platform MDaudit. This will have MDaudit pay $5.34 per share in cash for STRM stock, which represents a 138% premium to its prior closing price. The total value of the deal is $37.4 million, including debt.
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Streamline Health and MDaudit expect the deal to close in the third quarter of the year, so long as regulators and shareholders approve the merger. MDaudit has already reached an agreement with 22% of STRM shareholders to support the deal. When the deal is closed, Streamline Health will go private and its shares will no longer be traded on the Nasdaq.
STRM stock was up 120.96% as of Thursday morning, erasing its 39.1% year-to-date drop.
Is Streamline Health Stock a Buy, Sell, or Hold?
Spark, TipRanks’ AI analyst, rates Streamline Health a Neutral (40) with a $2 price target, representing a potential 12.66% downside. This STRM stock rating and price target will likely change in light of the MDaudit merger agreement.
