Byju’s made an offer of $15 a share to 2U’s board last week, according to a report.
David Paul Morris/Bloomberg
Shares of education technology provider
2U
soared more than 18% early Wednesday after a report said that Byju’s, an Indian-online education provider, had offered to buy the company for more than $1 billion.
Byju’s made an offer of $15 a share to
2U
’s
board last week, representing a 61% premium to 2U’s closing price of $9.30 on Tuesday, Bloomberg reported, citing a person familiar with the matter.
2U’s (TWOU) stock rose 21.6% to $11.31 in early Wednesday trading. The stock has fallen almost 54% this year.
Bangalore-headquartered Byju’s counts New York-based hedge fund Tiger Global Management among its backers. Byju’s was one of the most active media and telecom companies across the global merger and acquisition market during 2021, snapping up 10 edtech companies worth a combined $2.5 billion, according to data and analytics firm GlobalData.
Talks between Byju’s and 2U could still fall apart and a deal may not materialize if 2U’s board rejects the offer, Bloomberg said.
A spokersperson for 2U said the company has a long-standing policy of not commenting on market rumor and speculation. Byju’s didn’t immediately respond to a request from Barron’s for comment.
Write to Lina Saigol at [email protected]
