A looming acquisition by their company wasn't making GigaCloud Technology's (NASDAQ: GCT) shareholders very happy on Tuesday. Following the Asian B2B company's news that it is on the hook for an acquisition, those investors traded out of the stock aggressively. It ended the day more than 25% lower, while the S&P 500 index only slumped by 0.6%. 

Well before market open, GigaCloud divulged that it has entered into an agreement to acquire the bulk of privately held Noble House Home Furnishings and several affiliates. For this, the specialty tech company is to pay $85 million.

Noble House is undergoing Chapter 11 bankruptcy proceedings, and GigaCloud was the stalking horse in that process. This evocative term simply refers to the initial bidder of an asset or collection of assets in a bankruptcy proceeding. 

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Source Fool.com