DEFINITION of 'Acquiree'

The company that is being acquired or purchased in a merger or acquisition. The acquiree is also known as the "target firm".

Usually the acquiree will see a short-term movement in the price of its shares to resemble the price per share that was paid by the acquirer. This can be a positive or negative amount.

BREAKING DOWN 'Acquiree'

For example if ABC firm is trading at $12 per share and has 100,000 shares outstanding when it's acquired for 2 million by firm DEF, then ABC's share price should jump to approximately $20 per share (2,000,000/100,000 = 20).

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