Weave Communications (NYSE: WEAV) faces $7.40 cash buyout and NYSE delisting if merger is approved
Rhea-AI Filing Summary
Weave Communications, Inc. (WEAV) has entered into an Agreement and Plan of Merger under which Willow Merger Sub, Inc., an affiliate of Francisco Partners, will merge with Weave, and each outstanding share of common stock will be converted into the right to receive $7.40 in cash, without interest, at closing.
After completion of the transaction, Weave will become a wholly owned subsidiary of Willow Parent, LLC and its common stock will be delisted and deregistered. Closing is subject to majority stockholder approval, expiration of the Hart-Scott-Rodino waiting period, absence of legal restraints, no Company Material Adverse Effect, and other customary conditions.
Crosslink Capital, Inc., Crosslink Capital Management, LLC, and Michael J. Stark report aggregate beneficial ownership of 5,116,426 shares, or 6.4% of Weave’s outstanding common stock (based on 79,999,119 shares outstanding), and have entered into Support Agreements to vote their advised funds’ shares in favor of adopting the Merger Agreement.
Positive
- $7.40 cash per share Merger Agreement provides a defined liquidity event for WEAV stockholders, with all outstanding shares (subject to stated exceptions) to be converted into cash consideration at closing.
- Reporting persons owning 6.4% of WEAV’s shares have entered into Support Agreements committing to vote their advised funds’ shares in favor of the Merger, increasing certainty of obtaining stockholder approval.
Negative
- If the Merger closes, WEAV’s common stock will be delisted and deregistered, ending public trading and SEC reporting, which removes ongoing market liquidity and transparency for remaining investors.
Filing Explained
The amendment updates the ownership breakdown behind the merger support: Crosslink Capital reports
Key Figures
Merger cash consideration: $7.40 per share
Shares outstanding: 79,999,119 shares
Aggregate beneficial ownership (all reporting persons): 5,116,426 shares
+4 more
7 metrics
Merger cash consideration
$7.40 per share
Cash paid for each share of WEAV common stock at the Effective Time
Shares outstanding
79,999,119 shares
WEAV common stock outstanding as of August 3, 2026, per Form 10-Q
Aggregate beneficial ownership (all reporting persons)
5,116,426 shares
Total WEAV shares beneficially owned collectively by the reporting persons
Ownership percentage (all reporting persons)
6.4%
Portion of WEAV outstanding common stock beneficially owned collectively
Crosslink Capital, Inc. holdings
4,272,209 shares
Shares of WEAV beneficially owned by Crosslink Capital, Inc. (5.3% of class)
Crosslink Capital Management, LLC holdings
717,603 shares
Shares of WEAV beneficially owned by Crosslink Capital Management, LLC (0.9% of class)
Michael J. Stark holdings
4,398,823 shares
Shares of WEAV beneficially owned by Michael J. Stark (5.5% of class)
Key Terms
Agreement and Plan of Merger, Support Agreements, Company Material Adverse Effect, Hart Scott Rodino Antitrust Improvements Act of 1976
4 terms
Agreement and Plan of Merger regulatory
"the Issuer entered into an Agreement and Plan of Merger (the "Merger Agreement")"
An Agreement and Plan of Merger is a formal document where two companies agree to combine into one, outlining how the process will happen. It’s like a step-by-step plan for merging, and it matters because it shows both sides have agreed on the details before the official transition takes place.
Support Agreements regulatory
"Parent and the Issuer entered into support agreements (collectively, the "Support Agreements")"
Support agreements are written promises in which one party commits to back another’s planned action—such as lending money, voting shares a certain way, or providing operational help—so the plan can move forward. For investors, these agreements matter because they reduce uncertainty: they increase the likelihood a deal, restructuring or financing will succeed and can change the risk and value of the securities involved, much like teammates promising to cover key plays makes a game plan more likely to work.
Company Material Adverse Effect financial
"subject to the absence of any Company Material Adverse Effect (as defined in the Merger Agreement)"
A company material adverse effect is a significant, harmful change in a company’s business, financial condition, or operations that makes it much less valuable or viable. Investors care because this kind of change can trigger contract protections, delay or cancel deals, and often leads to a sharp re-evaluation of the stock — like discovering a serious health problem that suddenly changes future prospects and insurance coverage.
Hart Scott Rodino Antitrust Improvements Act of 1976 regulatory
"the expiration of the waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976"
A U.S. law that requires companies to notify federal antitrust authorities and wait for clearance before completing large mergers or acquisitions, acting like a pre-purchase check with regulators. It matters to investors because the required filings and waiting period can delay deals, create uncertainty about whether a transaction will be allowed, and sometimes lead to changes or breakups that affect a company’s value and strategy.
FAQ
What is happening to Weave Communications, Inc. (WEAV) under the new Merger Agreement?
Weave Communications, Inc. will be acquired by an affiliate of Francisco Partners, with each common share converted into $7.40 in cash. After the Merger, Weave will become a wholly owned subsidiary and its common stock will be delisted and deregistered.
What cash consideration will WEAV stockholders receive in the proposed transaction?
At the Merger’s effective time, each outstanding WEAV common share will be converted into the right to receive $7.40 in cash, without interest and subject to tax withholding. Certain shares, such as treasury and Parent-owned shares, are excluded from this conversion.
How are major WEAV stockholders supporting the proposed Merger?
Crosslink Capital, Inc., Crosslink Capital Management, LLC, and related funds entered into Support Agreements. They agreed to cause the funds they advise to vote their WEAV shares in favor of adopting the Merger Agreement and certain related matters, subject to specified terms.
What will happen to WEAV stock trading after the Merger closes?
If the Transactions are consummated, WEAV common stock will be delisted from the New York Stock Exchange and deregistered as promptly as practicable after closing, ending public market trading and SEC reporting for the shares.
AI-generated analysis. How Rhea-AI works. Not financial advice.
