What does cashout merger mean?

cashout merger meaning in Law Dictionary

The merger of a target firm paid-in cash because of the buying firm. Takes place when the targeted firm’s stockholders or shareholders try not to desire any part of ownership of this buying firm by stock as a consequence of the merger.

cashout merger meaning in Business Dictionary

Merger where an acquiring firm purchases the target firm's stock with cash, rather than the more widespread training of exchanging it with very own stock. Cash-out mergers occur where the target company's stockholders don't want becoming linked to the firm caused by the merger.