Software company The Active Network (ACTV) saw shares pop over 25 percent on news that it would be acquired by private equity firm Vista Equity Partners. The sale price of $1.05 billion, $14.50 a share, represents a premium of about 27 percent over Friday’s closing price.
Active Network could have new opportunities
The Active Network’s most active segment comes from its event management software that helps users sign up for marathons, register for hunting or fishing licenses, or reserve campsites. Among the San Diego-based firm’s biggest clients are the state of California and Cisco Systems (CSCO) .
"This announcement represents a very positive event for our stockholders and allows ACTIVE to build on its success to date," said Active Network’s interim CEO Jon Belmonte. "We believe the partnership with Vista will position us to execute on our strategy and further enhance our industry leadership."
Shares rebounded after management shake-up
Vista’s interest in The Active Network comes as the company’s shares have nearly tripled in value in 2013. It also comes almost one year exactly after a late 2012 sell-off that saw the company lose nearly 60 percent of its value during October and November of last year. However, the company changed management in May, with CEO Matthew Landau and Chairman David Alberga resigning, and that appeared to help spark its current run. Now, some believe the shift to private ownership could allow the company to further improve its outlook.
“There’s an opportunity to clean it up away from the public eye,” said Andre Sequin, an analyst with RBC Capital Markets. “I wouldn’t be surprised to see Active as a public company again in about five years.”
Buyout rumors had already started to swirl on Friday with Thoma Bravo LLC also believed to be interested in purchasing the company. Vista Equity Partners is a private equity firm specializing in acquiring technology companies and some $6 billion in equity holdings.
[Image Courtesy of Flickr Creative Commons]
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer