Shares of Root, Inc. (NASDAQ: ROOT) skyrocketed by 45.53% today as the WSJ reports suggest that the company has received a takeover bid.
The Wall Street Journal, citing sources familiar with the matter, states that Embedded Insurance has made multiple approaches to Root with an offer to acquire the company for $19.34 per share. This proposed takeover bid represents a substantial premium compared to the recent share prices.
To put things into perspective, Root’s stock closed at just over $6 per share on Tuesday and had reached a low of $3.31 earlier this year. So, the current offer is significantly higher, sparking great interest among investors and market observers.
It’s worth noting that James Hall, an entrepreneur who heads Embedded Insurance, has reportedly been persistent in his attempts to engage Root in acquisition talks. Hall initially sent a proposal to Root on June 9 and has been seeking discussions for almost a year now.
Root is a car insurance firm backed by Carvana Co. (NYSE: CVNA). Root has experienced a downward trend in its share value since its initial public offering in late 2020.