What does cash-out merger mean?

cash-out merger meaning in Law Dictionary

The merger of a target firm paid in cash by the purchasing firm. Takes place when the specific company's stockholders or shareholders usually do not wish any element of ownership of this buying firm by stock because of the merger.

cash-out merger meaning in Business Dictionary

in which an acquiring firm purchases the target firm's stock with money, as opposed to the more prevalent rehearse of purchasing having its very own stock. Cash out mergers occur in which the target firm's stockholders (investors) don't want any an element of the firm caused by the merger.