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SilverSun Technologies (NASDAQ:SSNT) is surging today on news of a corporate takeover. More specifically, one of the biggest names in the shipping sector has made a large-scale investment in it. Brad Jacobs is credited with building the XPO freight conglomerate, which has since been broken up. While he currently holds the position of chairman at industry-leading XPO (NYSE:XPO), Jacobs is clearly focused on a different industry. He is investing $900 million in the tech company through his own fund, Jacobs Private Equity (JPE). News of this development has turned SSNT stock into one of the day’s biggest movers.
Does Jacob’s investment mean that the former penny stock is entering a new era? Let’s dive deeper into the changes that investors can expect.
What’s Happening With SSNT Stock
Until news broke of Jacobs’ takeover, SSNT stock hadn’t done much for months. Rather, it had traded below the $5 mark for the past two quarters. Now that these changes are in play, it is up more than 220% for the day and doesn’t seem to be slowing down. The stock hasn’t seen this type of price action since one of SilverSun’s subsidiaries signed a letter of intent to acquire Dynamic Tech Services in 2021.
Despite his sizable investment, Jacobs isn’t the only player involved in this takeover. A group of other investors, including Sequoia Heritage, is collectively kicking in $100 million. Investors can expect changes that go beyond leadership, though, As FreightWaves reports:
“The $1 billion investment is for a software company with a market capitalization that isn’t even $20 million and its existing business will be spun off into a stand-alone operation. What remains will be a publicly traded company that, as JPE said in a news release, “will become a standalone platform for significant acquisitions in an industry to be announced soon, along with the Company’s new name.”
The outlet also notes that Jacobs has confirmed that he plans on staying involved with the new public company. Pending no further complications, the spinoff will be completed within “the next two to four months.” Jacobs may provide details on his latest deal, though, when he speaks to the Economic Club of New York on Dec. 11. Until he does, positive momentum is likely to stay constant for SSNT stock.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.
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