Weave Communications Inc. (NYSE:WEAV) stock jumped about 32% Tuesday after private equity firm Francisco Partners agreed to acquire the healthcare software company for about $650 million.
Under the deal, Weave shareholders will receive $7.40 per share in cash. That represents a 34% premium to the stock’s unaffected closing price on Aug. 17.
Weave To Go Private In $650 Million Deal
The transaction will take Weave private and end its listing on the New York Stock Exchange. The companies expect the deal to close in the fourth quarter of 2026.
However, the acquisition still requires approval from Weave shareholders and regulators. Weave’s board unanimously approved the deal and recommended that shareholders vote in favor.
Jefferies LLC is serving as Weave’s exclusive financial adviser. Orrick, Herrington & Sutcliffe LLP is its legal counsel. Kirkland & Ellis LLP is advising Francisco Partners.
Francisco Partners Targets Weave’s AI Growth
Weave provides an AI-powered patient engagement and payments platform for health care practices. More than 40,000 customer locations use its software.
CEO Brett White said the Francisco Partners deal will allow Weave to increase investment in its AI platform. The company also plans to expand its payments and revenue cycle management capabilities.
Francisco Partners sees further growth as health care practices adopt AI to automate operations and improve patient services.
The investment firm has invested in more than 500 technology companies and has raised over $75 billion since its launch more than 25 years ago.
WEAV Price Action: Shares were up 31.74% to $7.29 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo via Shutterstock
Login to comment