Alkami Tech falls on planned $300 mln convertible financing for acquisition

Shares of digital banking firm Alkami Technologies Inc ALKT.O down 6.7% before the bell to $25.48 after acquisition-related capital raise news

Plano, Texas-based firm offering privately $300 mln 5-yr convertible bonds

It plans to use portion of net proceeds to pay for capped calls, fund previously announced pending acquisition of MANTL

On Feb 27, co said it would buy Fin Technologies (MANTL), account opening solution, for $400 mln enterprise value, and announced Q4 results and 2025 outlook

Co has ~$2.8 bln market cap, per LSEG data

Through Fri close, shares off ~26% YTD following ~51% gain in 2024

8 of 11 analysts covering ALKT rate stock "strong buy" or "buy", rest "hold"; median PT of $45 is 65% above stock's last close - LSEG