Global Traffic Network Inc. (GNET) takes flight on takeover bid

Shares of Global Traffic Network Inc. (Nasdaq: GNET) rose 19.5% to $13.95 after the provider of personalized news information agreed to be purchased by private-equity firm GTCR LLC. Volume for the stock Wednesday was well in excess of two million shares, trouncing a daily average of less than 131,000.

A news release issued August 3 revealed that the Toronto-based company, a leading provider of custom traffic and news reports to radio and television stations outside the United States, announced the proposed takeover.

Under the terms of the agreement, Global stockholders will receive $14.00 in cash for each share of Global’s common stock, which represents approximately a 20% premium over the closing price on Tuesday, August 2, and a 22.7% premium based on the 60-day volume weighted average price of $11.41.

The Company operates the largest traffic and news network in Australia, operates traffic networks in eight Canadian markets and the largest national radio traffic network across the United Kingdom. In exchange for providing custom traffic and news reports, television and radio stations provide Global Traffic Network with commercial airtime inventory that the Company sells to advertisers. As a result, radio and television stations incur no out-of-pocket costs when contracting to use Global Traffic Network’s services.

Tags: buzz stocks, GNET, information and delivery services, nasdaq, technology, Technology Stocks

This entry was posted on Wednesday, August 3rd, 2011 at 11:40 am by Glenn and is filed under Technology Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.