Shares of Blue Nile Inc.
The company expects the transaction to close in the first quarter of 2017. According to the agreement terms, Blue Nile is entitled to solicit alternative acquisition proposals from third parties during a 30-day "go-shop" period.
The acquisition news should be a blessing in disguise for investors as the company’s third quarter results missed estimates. The company reported EPS of $11, missing estimates by a penny. Similarly, the company’s revenue of $105.1 million missed expectations by $2.65 million.
Commenting on the acquisition, Blue Nile CEO and President, Harvey Kanter, said, “Since its inception, Blue Nile’s guiding principle has been to provide value to its customers, suppliers, and shareholders, and this transaction provides tremendous value to all. Blue Nile will continue its innovative drive that has disrupted the diamond industry and made us the smartest, easiest, and most pressure-free way for consumers to buy a diamond.”
Following the news, the stock jumped 32.42 percent to $40.31 in the pre-market session.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.