Insights

Why Points.com Shares Exploded Higher Today

What happened
Shares of the Canadian loyalty e-commerce company Points.com (NASDAQ: PCOM) had soared nearly 43% as of 2:30 p.m. ET today after the company announced that it plans to be acquired in an all-cash transaction.
So what
Points.com announced that the private company Plusgrade, a Canadian travel tech company that helps people use reward points to upgrade their airline seats, will acquire the company outright for $25 per share in cash.
The total purchase price of $385 million represents a 45% premium to Points.com’s closing price on the Toronto Stock Exchange on May 6, where it is also listed.
Image source: Getty Images.

The deal is expected to close in July, at which time Points.com will be delisted from the Nasdaq and Toronto exchanges.
Points.com CEO Rob MacLean issued a statement saying: “We are thrilled to be joining forces with Plusgrade in what will become a truly global leader and provider of value-adding and revenue-generating services for partners in the airline, hospitality, rail and financial services industries. Additionally, we have benefited from a supportive group of shareholders over the past number of years and are pleased to have created this compelling outcome.”
Plusgrade CEO Ken Harris said the combination of the two companies provides a chance to “create something much greater, for the benefit of our partners in the global travel industry, and ultimately for the benefit of the traveler.”
Now what
The purchase price represents the highest the stock has been since 2014, so this seems like a relatively good outcome for shareholders. For those interested in merger arbitrage, Points.com as of this writing trades at $24.52 per share, representing some slight upside if and when the deal closes.
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

Shares of the Canadian loyalty e-commerce company Points.com (NASDAQ: PCOM) had soared nearly 43% as of 2:30 p.m. ET today after the company announced that it plans to be acquired in an all-cash transaction.

So what

Points.com announced that the private company Plusgrade, a Canadian travel tech company that helps people use reward points to upgrade their airline seats, will acquire the company outright for $25 per share in cash.

The total purchase price of $385 million represents a 45% premium to Points.com’s closing price on the Toronto Stock Exchange on May 6, where it is also listed.

Image source: Getty Images.

The deal is expected to close in July, at which time Points.com will be delisted from the Nasdaq and Toronto exchanges.

Points.com CEO Rob MacLean issued a statement saying: “We are thrilled to be joining forces with Plusgrade in what will become a truly global leader and provider of value-adding and revenue-generating services for partners in the airline, hospitality, rail and financial services industries. Additionally, we have benefited from a supportive group of shareholders over the past number of years and are pleased to have created this compelling outcome.”

Plusgrade CEO Ken Harris said the combination of the two companies provides a chance to “create something much greater, for the benefit of our partners in the global travel industry, and ultimately for the benefit of the traveler.”

Now what

The purchase price represents the highest the stock has been since 2014, so this seems like a relatively good outcome for shareholders. For those interested in merger arbitrage, Points.com as of this writing trades at $24.52 per share, representing some slight upside if and when the deal closes.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!