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Weave Communications Inc. (NYSE:WEAV) saw its stock jump about 32% on Tuesday after private equity firm Francisco Partners agreed to acquire the healthcare software company for roughly $650 million. It's a classic take-private move, and shareholders are getting a nice premium for their trouble.
Under the terms of the deal, Weave shareholders will receive $7.40 per share in cash. That works out to a 34% premium over the stock's unaffected closing price on Aug. 17. Not a bad payday for a Tuesday.
The transaction will take Weave private and end its listing on the New York Stock Exchange. The companies expect the deal to close in the fourth quarter of 2026. But it's not a done deal yet—the acquisition still needs approval from Weave shareholders and regulators. Weave's board has unanimously approved the deal and is recommending that shareholders vote in favor. That's a good sign, but nothing is guaranteed until the votes are counted.
Jefferies LLC is serving as Weave's exclusive financial adviser, with Orrick, Herrington & Sutcliffe LLP as legal counsel. Kirkland & Ellis LLP is advising Francisco Partners. The usual cast of characters for a deal like this.
Weave provides an AI-powered patient engagement and payments platform for healthcare practices. More than 40,000 customer locations use its software, which is a pretty solid base to build on.
CEO Brett White said the Francisco Partners deal will allow Weave to increase investment in its AI platform. The company also plans to expand its payments and revenue cycle management capabilities. In other words, they're doubling down on what's working and looking to grow further.
Francisco Partners sees plenty of room for growth as healthcare practices adopt AI to automate operations and improve patient services. The firm has invested in more than 500 technology companies and has raised over $75 billion since its launch more than 25 years ago. So they've got the resources to back up their ambitions.
WEAV Price Action: Shares were up 31.74% to $7.29 at the time of publication on Tuesday, according to market data.
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