By Elias Schisgall
Repay Holdings received an unsolicited acquisition officer from Forager Capital Management to buy the company for $5.25 a share in cash, a boost from the fund's original offer.
Payment-processing-solutions company Repay confirmed it had received the offer on Monday. It said its board would review the proposal alongside financial and legal advisors.
Repay had earlier rejected an acquisition proposal from Forager at $4.80 a share, saying it undervalued the company, Forager said last month. It issued its updated proposal on Monday, saying it represents a 91% premium to the company's 30-day volume-weighted average price of $2.75 at the time of its original proposal.
"Our increased price reflects our continued conviction in the value of Repay and our belief that the Board's initial step deserved a constructive response," Forager said Monday. "We are confident we could identify additional value if we are permitted customary access to management and are allowed to complete confirmatory due diligence."
Forager has a roughly 13% stake in the company, it said.
Shares of Repay were up 21%, to $4.32, in Monday afternoon trading. The stock has risen 18% this year.
Write to Elias Schisgall at elias.schisgall@wsj.com