Overview
Repay Holdings Corporation (NASDAQ: RPAY) saw its share price increase 22.1% on Monday after Forager Capital Management raised its cash acquisition offer to $5.25 per share.
Offer Details
Forager Capital Management, which holds approximately 13% of Repay’s outstanding shares and is the company’s largest shareholder, submitted an updated proposal to Repay’s board on June 26. The new price of $5.25 per share represents a 91% premium to Repay’s 30‑day volume‑weighted average price of $2.75 that was in effect at the time of Forager’s original proposal.
The proposal seeks to acquire 100% of Repay’s outstanding common stock through a negotiated merger agreement. Forager states it has sufficient financing to complete the transaction and that the offer is not subject to a financing condition. Completion is subject to customary conditions, including regulatory approvals and the execution of a definitive merger agreement.
Rationale and Statements
In a letter to the board, Forager said the increased price reflects its “continued conviction in the value of Repay” and follows an in‑person meeting with Repay’s chairman. The firm emphasized that the proposal is based solely on publicly available information and that additional value could be identified through customary management access and confirmatory due diligence.
Forager also argued that taking Repay private would eliminate public‑company costs and obligations, positioning the business to better execute its mission.
Financing and Track Record
Forager cited its recent acquisition of Quipt Home Medical for approximately $260 million as evidence of its ability to close transactions swiftly. The investor has engaged White & Case LLP as its legal advisor and is prepared to enter a confidentiality agreement to proceed with due diligence.