Shares in Accelerant Holdings (NYSE:ARX) surged by 57 percent week-on-week following announcements that it is set to be acquired for $4 billion by software-focused investment firm Thoma Bravo.
Much of the jump came on Thursday, following the announcement, as investors snapped up shares after the offer price was placed at $20.25—or a 49 percent premium over its closing price on Wednesday. It was the second-highest gainer last week.
Photo by Tima Miroshnichenko on Pexels
6% Ticking Fee
Another clause of the agreement also helped attract shareholder buying.
According to Accelerant Holdings (NYSE:ARX), it would pay Class A and B shareholders a ticking fee at a rate of 6 percent per annum if the closing of the transaction is delayed by certain pending insurance regulatory approvals.
The transaction is expected to be completed in the first half of the year, subject to customary closing conditions, including regulatory and shareholder approvals.
Upon closing, Accelerant Holdings (NYSE:ARX) is set to become a private company and no longer trade on the New York Stock Exchange.
Entities affiliated with Altamont Capital Partners—which currently own a combined 82 percent of the listed firm’s stake—intend to retain their equity ownership alongside Thoma Bravo, the terms of which will be finalized prior to closing.
Strong Q2
The acquisition plan followed the strong results of Accelerant Holdings’ (NYSE:ARX) earnings performance in the second quarter of the year, with its net income soaring by 511 percent to $80 million from only $13.1 million in the same period last year.
Total revenues also increased by 63 percent to $356.9 million from $219.1 million year-on-year.
“Our second quarter financial results highlight the attractive growth and durability of our business,” Chief Finance Officer Linda Huber said.
“Exchange Written Premium grew 23 percent year-over-year, and trailing twelve months premiums are now $4.6 billion. Our fee-based operating revenue and adjusted EBITDA, which we define as consolidated results less the underwriting segment, increased 56 percent and 91 percent, respectively, compared to the 2025 second quarter. We look forward to working with Thoma Bravo to grow the business alongside our employees, Members, and Risk Capital Partners,” she noted.
While we acknowledge the risk and potential of ARX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ARX and that has 10,000% upside potential, check out our report about the cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
