Benzinga | Apr 5, 2021 11:07AM EDT

Leaf Stock Is Trading Higher As Graham Acquires It For 21% Premium

* Education and media company Graham Holdings Co (NYSE: GHC) inked an agreement to acquire consumer internet company Leaf Group Ltd (NYSE: LEAF), an all-cash transaction valued at $323 million.

* The purchase price of $8.50 per share signifies a 21% premium to Leaf's April 1 closing price.

* The board unanimously ratified the transaction.

* Leaf's board received the acquisition proposal on February 9.

* Leaf will become a wholly-owned subsidiary of Graham under the arrangement.

* Leaf's CEO Sean Moriarty and other key management members will reprise their roles.

* Graham held cash and cash equivalent of $1.01 billion as of December 31, 2020.

* Price action: GHC shares traded higher by 1.97% at $574.83 in the premarket session on the last check Monday. LEAF is trading higher by 21.2% at $8.53 on the last check Monday.