Shares in Austin-based banking software house Q2 have jumped on reports that it has received a takeover offer from a private equity firm.
Shares in the vendor rose by 17% after Bloomberg reported that Q2 was mulling a sale.
The median/average premium for software takeovers by private equity takeovers since 2019 is 30%/35% respectively, which would imply a price of around $60/share for Q2, Baird analyst Joe Vruwink told Seeking Alpha.
The company, which provides digital banking software to 1300 customers in North America, reported revenue above guidance in its latest set of first quarter results, set against a net loss of of $23.6 million.
Shares in Q2 have been hammered by the ongoing rout of tech stocks, with the stock price plunging by 55% over the past year.