Leerink downgrades Imprivata to market perform

Leerink downgraded Imprivata (NYSE:IMPR) to “market perform” but upped its price target to $19.25 from $17 after the company entered into a definitive agreement to be acquired by an affiliate of Thoma Bravo, LLC, a private equity investment firm. The stock closed at $19.01 on Wednesday.

Shareholders will receive $19.25 in cash per share of Imprivata common stock, which is a 33% premium to Tuesday’s closing price of $14.50.

The transaction is valued at about $544-million and “we do not believe that another bidder will emerge,” writes analyst David Larsen. “We do expect this deal to close at $19.25.”

He said that while Cerner could have been a good fit, “we do not believe that Cerner will make a competing offer because it is highly focused on the integration of Siemens Health Services, and there seems to be greater attention on the development of Cerner’s population health management solution and data analytics capabilities.”