Alkami Prices $300M Convertible Notes to Fund MANTL Acquisition

Alkami Technology, Inc. has priced a $300 million offering of 1.50% convertible senior notes due 2030, with an option for additional $45 million if exercised within 13 days. The offering aims to fund the acquisition of Fin Technologies (MANTL) and other corporate purposes, with net proceeds estimated at $290.3 million. Alkami's shares fell nearly 13% following the announcement, continuing a downward trend with a YTD decline of approximately 36%. Analysts remain optimistic, with 8 out of 11 rating the stock as 'strong buy' or 'buy' and a median price target suggesting significant upside. The notes will accrue interest payable semi-annually and are convertible under certain conditions, with a premium of 37.5% over the stock's last close. The offering is set to settle on March 13, 2025, subject to closing conditions.