UserTesting, Inc. (NYSE: USER) is engaged as a software company, which is focused on developing solutions to help businesses gain insights from customers in a quick, opt-in feedback and experience capture technology. Shares of the customer feedback tech company are skyrocketing 94% through early trading on Thursday, October 27, 2022. Over the past three months, UserTesting has seen average daily volume of 335,490 shares. However, volume of 11.96 million shares or dollar volume of around $89.22 million, has already exchanged hands through early trading.

Shares of UserTesting are soaring after the company released third quarter 2022 financial results and announced it has entered into a definitive agreement to be acquired by Thoma Bravo and Sunstone Partners for $7.50 per share in cash.

The acquisition values the software company at $1.3 billion, which is a 94% premium compared to UserTesting’s close on October 26, 2022. Once the acquisition closes, the two private equity firms plan to merge UserTesting and UserZoom, after Thoma Bravo purchased majority control of the company back in April 2022. UserTesting CEO, Andy MacMillan, has been tapped to lead the combined company. Thoma Bravo and Sunstone Partners see strong synergies between UserTesting and UserZoom, which is a user experience insights company that provides complementary analysis to the UserTesting platform.

“We believe the combination of UserTesting and UserZoom will unlock tremendous value for our customers by further integrating and expanding the suite of research methods, testing types, and measurement options available—all while making the voice of the customer and human insight more accessible across an organization and easily integrated into their processes and workflows,” said Andy MacMillan, CEO of UserTesting. “We are pleased to partner with Thoma Bravo and Sunstone Partners to build upon our award winning Human Insight Platform to further innovate in the CX space and continue to serve a growing number of teams and use cases. We are confident that this transaction—joining two complementary players in the customer experience space to form a new private company—offers the most compelling value creation for all of our stakeholders, and is a testament to the value of human insight, the UserTesting platform, our talented team, and loyal customer base.”

Turning to the third quarter 2022 results, UserTesting reported total revenue of $49.4 million, which represents year-over-year growth of 28%. GAAP net loss was $15.2 million or -$0.11 per share. Cash and equivalents totaled $164.6 million, as of September 30, 2022.

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