USI Holdings Corporation (NDAQ:USIH) announced in an 8K filing with the SEC yesterday after the bell that they received a buyout offer from a private equity firm. The company gave no details as to the buyout price; however, they stated that they would review the offer. According to the associated press release:

"USI Holdings Corporation today announced that in response to an indication of interest received from a private equity firm in acquiring all of the outstanding common stock of the Company, the Board of Directors of the Company has formed a Special Committee consisting of outside directors to review the proposal and consider all of the Company's options. Lazard Frères & Co. LLC and Dewey Ballantine LLP have been engaged by the Special Committee to assist in its review. No assurance can be given that any transaction will be entered into or consummated." (Read More)

Investors pushed the stock up 7% in today's trading on the news. The company is currently undervalued, trading at a 20% discount to enterprise value with a PEG ratio of only 0.91. The company also has healthy profit margins and an excellent track record. This is definitely a stock to watch as the buyout premium cuold easily end up being higher than the 7% jump we've seen so far today.

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