What Happened?

Shares of restaurant software company (NYSE: OLO) jumped 13.5% in the afternoon session after it entered into a definitive agreement to be acquired by software investment firm Thoma Bravo in an all-cash transaction valued at approximately $2 billion. 

The deal will see Olo shareholders receive $10.25 per share in cash. This price represents a significant 65% premium to the company's unaffected share price of $6.20 on April 30, 2025, which was the last trading day before media reports surfaced about a potential transaction.  

The acquisition, which has been unanimously approved by Olo's board, is expected to accelerate the company's growth and enhance its offerings for the more than 750 restaurant brands it serves. Upon completion of the deal, anticipated by the end of 2025, Olo will become a privately held company and its shares will no longer be traded on public stock exchanges.

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What Is The Market Telling Us

Olo’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Olo and indicate this news significantly impacted the market’s perception of the business.

Olo is up 31.3% since the beginning of the year, and at $10.12 per share, has set a new 52-week high. Investors who bought $1,000 worth of Olo’s shares at the IPO in March 2021 would now be looking at an investment worth $291.22.

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