What Happened?
Shares of healthcare tech company Premier (NASDAQ: PINC) jumped 8.4% in the morning session after the company announced it had agreed to be acquired by an affiliate of Patient Square Capital.
Under the terms of the all-cash deal, shareholders would receive $28.25 for each share they owned, representing a significant premium of 23.8% over the stock's 60-day average price. The transaction, valued at about $2.6 billion, received unanimous approval from Premier's Board of Directors. Upon completion, Premier will become a private company, and its stock will no longer trade on public exchanges. Company leadership stated that going private would improve financial flexibility and allow for faster investments in technology and product development. The deal is expected to close by the first quarter of 2026, pending shareholder and regulatory approvals.
Is now the time to buy Premier? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Premier’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 9% as reports surfaced that private equity firm Patient Square Capital is exploring an acquisition of the healthcare services company. The news, first reported by Bloomberg, cited sources familiar with the matter, though it was noted that deliberations are in the early stages and a deal is not guaranteed. An analyst from Leerink Partners commented that another sale process isn't "shocking" and that a transaction would be reasonable, suggesting the company's underlying business is stronger than its stock price reflects. The potential for a buyout is driving investor optimism.
Premier is up 32.2% since the beginning of the year, and at $28.25 per share, has set a new 52-week high. Investors who bought $1,000 worth of Premier’s shares 5 years ago would now be looking at an investment worth $916.32.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
