TaskUs Goes Private in $16.50 Per Share Buyout Amid Strong Q1 Results and AI-Driven Growth

TaskUs Stock Soars As Blackstone Unveils Buyout As Earnings Smash Estimates - TaskUs (NASDAQ:TASK), Blackstone (NYSE:BX)

Feel unsure about the market's next move? Copy trade alerts from Matt Maley -- a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now. TaskUs Inc. TASK surged on Friday after announcing strong first-quarter results and a $16.50-per-share all-cash buyout by Blackstone Inc. BX and its co-founders. The company has entered into an agreement to be acquired and taken private in an all-cash deal led by an affiliate of Blackstone, alongside TaskUs co-founders Bryce Maddock and Jaspar Weir. The transaction values each share at $16.50, reflecting a 26% premium over TaskUs' 30-day volume-weighted average price. The buyout group plans to acquire all outstanding Class A shares it does not currently own, effectively taking TaskUs off public exchanges. This strategic move, unanimously approved by the TaskUs board following recommendations from its special committee of independent directors, is designed to strengthen the company's long-term strategy. CEO Bryce Maddock emphasized that the acquisition will help TaskUs navigate rapid shifts driven by artificial intelligence and allow for long-term investments to support both the company and its clients. Jaspar Weir will continue serving as president after the deal closes, ensuring leadership continuity during the company's next phase of growth. Maddock noted, "This strategic transaction will deliver immediate value to stockholders, while enabling TaskUs to make long-term investments to better support both our own business and our clients as we scale and adapt in the AI age." Amit Dixit, head of Asia Private Equity at Blackstone, underscored the firm's confidence in TaskUs' ability to thrive in the fast-changing AI landscape, saying the transaction will provide the company with greater flexibility and resources to strengthen its value proposition. The deal is expected to close in the second half of 2025, pending regulatory and shareholder approvals. In addition to the buyout news, TaskUs reported strong first-quarter 2025 earnings. Revenue reached $277.8 million, up 22.1% year-over-year and surpassing the $271.06 million estimate by $6.7 million. The company reported net income of $21.1 million (7.6% margin), adjusted net income of $35.9 million (12.9% margin), and diluted EPS of 23 cents. Notably, adjusted EPS came in at 38 cents, beating the 32 cents estimate. Adjusted EBITDA reached $59.3 million, exceeding guidance by 130 basis points. TaskUs also generated $36.3 million in operating cash flow, $21.8 million in free cash flow, and achieved a 36.8% adjusted EBITDA-to-free cash flow conversion. Price Action: TASK shares are trading higher by 14.53% at $16.47, and BX is up 0.97% at $141.07 on Friday's last check. Image: Shutterstock BXBlackstone Inc$139.970.11%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum47.31Growth76.24Quality66.23Value-Price TrendShortMediumLongOverviewTASKTaskUs Inc$16.6415.7%AIQGlobal X Artificial Intelligence & Technology ETF$38.21-0.26%CTSHCognizant Technology Solutions Corp$79.11-0.13%IGViShares Expanded Tech-Software Sector ETF$99.28-1.13%Got Questions? AskWhich tech firms may benefit from AI shifts?How could Blackstone influence future acquisitions?What implications does TaskUs' acquisition have for investors?Are there similar companies poised for buyouts?How will AI investments reshape business strategies?What opportunities exist in private equity post-acquisition?Which emerging markets could be impacted by this deal?How might TaskUs' leadership affect stock performance?What are the implications for shareholder value in 2025?Which industry sectors are likely to see growth due to AI?Powered By This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Why TaskUs Stock Soared on Friday | The Motley Fool

Digital services provider TaskUs (TASK 17.45%) had a busy day on Friday. The company, which provides customer support and business process operations to other businesses, reported first-quarter earnings in the early morning -- and that wasn't the biggest news of the day. TaskUs is also going private in a deal financed by its co-founders and banking powerhouse Blackstone (BX -0.16%). The stock had gained 18.2% overnight as of 12:45 p.m. ET, trending higher across the morning session. Let's start with the simple earnings report. The average Wall Street analyst was looking for earnings near $0.33 per share. Revenues were expected to rise 15% year over year, landing in the neighborhood of $257.8 million. The company crushed the analyst community's targets on the revenue line and edged out the earnings target by a smaller margin. Sales jumped 22% higher to $277.8 million, while adjusted earnings rose 27% to $0.38 per share. Management highlighted artificial intelligence (AI) services as the key growth driver behind these fantastic results. But TaskUs didn't provide much analysis of the quarter, canceling the scheduled earnings call. That makes sense with a pending takeover on the table. Co-founders Bryce Maddock (current TaskUs CEO) and Jaspar Weir (president) teamed up with Blackstone to propose an all-cash buyout for $16.50 per share. That's 15% above Thursday's closing price, and roughly in line with Friday's boosted share prices. The buyout was unanimously approved by the TaskUs board of directors. This deal is now awaiting the usual range of closing conditions, such as regulatory approval and a positive shareholder vote. Weir and Maddock already own about 11% of the company, lowering the bar for shareholder approval. The buyers expect to close the buyout in the second half of 2025. "This strategic transaction will deliver immediate value to stockholders, while enabling TaskUs to make long-term investments to better support both our own business and our clients as we scale and adapt in the AI age," Maddock said in a prepared statement. This isn't exactly a victory march, though. TaskUs shares changed hands at more than $80 per share in the fall of 2021. The buyout price represents an 80% discount from those lofty heights, when online delivery of customer service looked like a slam-dunk win for the long haul. In reality, the demand for such services diminished. TaskUs' revenue growth ground to a halt in 2022 and only recently peaked back over the old sales records again. Blackstone is taking a calculated risk here. I think it's too late to take advantage of the company's rekindled business growth, because I don't see a bidding war erupting at this point.