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Advent International acquired the company in a deal worth $6.4 billion

Maxar Technologies Inc (NYSE:MAXR) has more than doubled this morning, last seen up 120.1% at $50.84, after the company agreed to be acquired by Advent International in a deal worth $6.4 billion. The deal will require advent to pay $53 per share to shareholders — which is a 129% premium to MAXR’s Thursday close. Once the deal closes, which is expected to happen in mid 2023, Maxar will become a privately held firm. 

Today’s pop puts MAXR above several long-term technical ceilings, including the 200-day moving average, which has pressured the stock lower several times during the past two years. The equity also toppled its former 2022 peak of $40.48, hit on April 19, and is trading at its highest level since March 2021. 

MAXR’s typically quiet options pits are brimming with activity today. So far, 1,117 calls and 1,382 puts have exchanged hands — which is 12 times the intraday average. The most popular is the January 2023 50-strike put, followed by the 35-strike put in the same series, with positions being bought to open at both. 

It’s worth noting that these options can be had at a relative bargain right now. This is because the security’s Schaeffer’s Volatility Index (SVI) of 58% stands higher than just 11% of readings from the past year. In other words, options players are pricing in relatively low volatility expectations at the moment. 

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By admin