Shares of Enterasys Networks (ETS) soared 27% after the network equipment company agreed to be taken private by Tennenbaum Capital Partners and the Gores Group for $386 million in cash. The deal values Enterasys at $13.92 a share, representing a premium of 32% over Friday's closing price of $10.57. The transaction is expected to close during the first quarter of 2006. "The price reflects our success in repositioning Enterasys and returning it to a solid operational and financial position, as demonstrated by our strong Q3 results," Enterasys said in a statement. JPMorgan Securities served as Enterasys' financial adviser. Shares recently gained $2.85 to $13.42.
I.D. Systems (IDSY - Get Report) rose 6% after the maker of wireless tracking systems agreed to a pilot program with Wal-Mart (WMT - Get Report). The retail giant will deploy I.D. Systems' industrial vehicle management system at one of its distribution centers in Texas. The system consists of wireless devices installed on powered industrial vehicles such as fork trucks and pallet movers, with a communication infrastructure and software for access control, utilization analysis and location tracking. "This deployment will serve as a pilot program for Wal-Mart to evaluate the benefits of the system on material handling vehicle operations, productivity, safety, and maintenance," ID Systems said. Shares were trading up $1.20 to $19.80.
Shares of Neon Systems (NEON - Get Report) jumped 19% after the software company posted big gains in second-quarter earnings and sales. The company earned $724,000, or 7 cents a share, for the quarter ended Sept. 30. Excluding certain items, Neon Systems earned $1.2 million, or 12 cents a share, compared with a year-ago loss of $399,000, or 4 cents a share, on a comparable basis. Sales, meanwhile, rose to $5.9 million from $3.8 million last year. "We are delighted to report such a strong quarter, although we still remain focused on our annual rather than quarterly performance," the company said. Shares rose 69 cents to $4.29.