On Thursday, JMP Securities adjusted its rating on Doma Holdings Inc. (NYSE:DOMA) stock, moving from Market Outperform to Market Perform. This change follows the recent expiration of a 50-day "go-shop" period after Doma agreed to a private acquisition deal.
Doma Holdings, a company specializing in real estate transaction solutions, had previously announced on April 17, 2023, that it would be acquired and merged with Title Resources Group. The agreed acquisition price is approximately $6.29 per share in cash, valuing the deal at around $84 million.
The analyst from JMP Securities noted that the acquisition price represents a 39% premium over Doma's closing share price of $4.54, which was recorded just before the deal's announcement. The transaction has also received unanimous approval from the board of Doma Holdings.
The analyst's commentary highlighted that with the conclusion of the go-shop period, the shares are now considered to be fairly valued. During this period, Doma had the opportunity to seek out potential alternative acquisition proposals that could be superior to the existing agreement.
The acquisition is a significant move for Doma, which operates within the real estate industry, providing technology-driven solutions to improve the home closing experience. The merger with Title Resources Group is expected to bolster the company's offerings and market position.
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