Weave Communications Inc said on Tuesday it agreed to be acquired by Francisco Partners in a deal valued at $650 million, sending its shares up 31.8% to $7.29.
The all-cash transaction values Weave at $7.40 per share, a 33.8% premium over its prior closing price of $5.45. The New York Stock Exchange-listed company will cease trading and become a private entity upon completion of the deal.
Shares of Weave, which had fallen 4% year-to-date even after Tuesday’s surge, were halted during the trading session. Francisco Partners did not disclose financing details or the expected timeline for closing the acquisition.
The deal underscores growing consolidation in cloud communications as firms seek scale amid competitive pressure. Weave provides cloud-based phone systems and customer engagement software to small and mid-sized businesses.
