Rollover Commitment Letter (M&A Glossary)

Summary

In a merger, an agreement between the target’s stockholders and the buyer in which the stockholders agree to exchange their stock in the target for equity in the acquirer upon closing. A rollover commitment letter is typically entered into between the rollover stockholder(s) and the purchaser at the same time as the merger agreement, and the rollover is effected immediately prior to the closing of the merger.