Bullish indicating open at $55-$60, IPO prices at $37
LONGBOAT KEY, Fla. - Video-sharing platform Rumble (NASDAQ:RUM) confirmed on Sunday its interest in pursuing an all-stock exchange offer for 100% of Northern Data AG (ETR:NB2), a provider of AI and High Performance Computing solutions. Northern Data, currently trading at $26.48, has seen a notable 9.22% gain over the past week. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics.
Under the proposed terms, Northern Data shareholders would receive 2.319 newly issued Class A Rumble shares for each Northern Data share, representing approximately 33.3% total pro forma ownership in Rumble if all outstanding Northern Data shares are tendered. Northern Data, with a market capitalization of $1.7 billion, has demonstrated strong growth with revenue increasing by 158.32% in the last twelve months.
Tether, which holds approximately 54% of Northern Data’s outstanding shares, has indicated support for the potential transaction. Following completion, Tether would become Rumble’s largest Class A common stockholder and commit to a multi-year GPU purchase agreement.
The proposed transaction assumes Northern Data would divest its Peak Mining unit prior to completion, with proceeds used to reduce an existing Tether loan to Northern Data.
If completed, Rumble would integrate Northern Data’s Ardent data center business and Taiga GPU service into its operations. The Taiga business reportedly includes approximately 20,480 Nvidia H100 GPUs and 2,048 H200 GPUs, while Ardent has five owned data center sites with potential capacity of nearly 850 MW.
Chris Pavlovski, Rumble’s Chairman and CEO, would retain majority voting power and has indicated support for the potential offer.
The transaction remains subject to multiple conditions including completion of due diligence, definitive agreement execution, board approvals, and regulatory clearances. Rumble noted no final decision has been made regarding the launch of the offer.
Guggenheim Securities is acting as financial advisor to Rumble, with Willkie Farr & Gallagher serving as legal counsel.
This article is based on a press release statement from Rumble. Analysts maintain a positive outlook on Northern Data, with InvestingPro data showing multiple additional insights about the company’s financial health and growth prospects. Subscribers can access over 10 additional ProTips and detailed financial metrics to better evaluate this potential merger.
In other recent news, Northern Data AG reported that it is evaluating merger or acquisition proposals for its core divisions, Taiga Cloud and Ardent. The company has not yet made any final decisions regarding these potential deals. In a related development, Berenberg analysts revised their valuation of Northern Data, adjusting the stock price target from €43.00 to €40.00 while maintaining a Buy rating. This adjustment reflects strategic interest from U.S.-listed companies in Northern Data’s divisions. The developments suggest a focus on potential partnerships or sales, though specifics remain undisclosed. Investors may find these strategic considerations noteworthy as they could influence Northern Data’s future operations and financial performance.
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