Why Shares of NIC Inc. Jumped Today

Shares of NIC Inc. (NASDAQ: EGOV), a digital service provider for government agencies, jumped by more than 15% Wednesday morning after the company announced that it would be acquired by Tyler Technologies (NYSE: TYL). Shares of Tyler were also trading more than 7% higher on the news.

Under the terms of the deal, Tyler Technologies, the largest software provider to the U.S. public sector, will buy NIC in an all-cash deal for $2.3 billion, or $34 per share. That represents a premium of roughly 22% over NIC's 30-day weighted trading average.

NIC currently serves more than 7,100 federal, state, and local government agencies across the country, providing technology that enables those agencies to better interact with people and businesses.

Source Fool.com