Benzinga | Mar 1, 2021 01:49PM EST

Boingo Wireless Shares Surge As Digital Colony To Acquire It For 23% Premium At $854M

Digital Colony Management affiliate inked a merger agreement to acquire distributed antenna system (DAS) and Wi-Fi provider Boingo Wireless Inc (NASDAQ: WIFI) for $854 million. Boingo will become a privately held company upon closure.

* The purchase price of $14 per share signifies a 23% premium to Boingo's Friday closing price of $11.40.

* "We are pleased to have reached this agreement with Digital Colony, which will deliver significant and immediate value to Boingo's stockholders and concludes a robust strategic review process undertaken by Boingo over the past year," said Boingo CEO Mike Finley.

* The transaction is subject to shareholder approval.

* TAP Advisors is the financial advisor to Boingo's board, with Gunderson Dettmer as legal counsel.

* Price action: WIFI stock was up 23.6% at $14.09 on the last check Monday.