Why Silver Spring Networks, Inc. Stock Skyrocketed Today

Shares of Silver Spring Networks Inc. (NYSE: SSNI) were up 24.2% as of 1:45 p.m. EDT Monday after the company announced it will be acquired by Itron Inc. (NASDAQ: ITRI). Shares of Itron are up around 4% as of this writing.

More specifically, Itron will acquire Silver Spring Networks in a $16.25-per-share cash deal valued at roughly $830 million, net of Silver Spring's $118 million in cash. That's a 25% premium over Silver Spring's closing price on Friday. Itron will finance the purchase with a combination of cash on hand and $750 million in new debt.

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Source: Fool.com