Today's Tech Winners and Losers
Shares of SSA Global Technologies (SSAG) were among technology's winners Monday, climbing 22% after the software company agreed to be acquired by privately held Infor for $19.50 a share in cash.
The price represents a 25% premium to Friday's closing price of $15.59. "With this acquisition, Infor will become the third largest enterprise software provider in the industry with approximately $1.6 billion in revenue," Infor said in a press release. The deal is expected to close during the third quarter. Shares of SSA Global were trading up $3.46 to $19.05.
Shares of Radica Games (RADA) fell 6% after the maker of electronic games said it swung to a first-quarter loss. The company posted a loss of $1 million, or 5 cents a share, on revenue of $18.5 million. One analyst polled by Thomson First Call expected break-even earnings and revenue of $21 million. During the year-earlier quarter, the company earned $495,000, or 3 cents a share, on revenue of $22.5 million. Shares were down 68 cents to $10.10.
First Avenue Networks (FRNS) jumped 30% after the wireless-access services company agreed to merge with privately held FiberTower. Terms of the deal call for First Avenue to issue about 73.7 million shares to FiberTower. After the stock issuance, FiberTower shareholders will own 51% of the combined entity. "This merger is about accelerating business growth and minimizing the associated business risks," First Avenue said. "The market is aggressively implementing high capacity applications, and wireless transport is ideal for backhauling these services." The deal is expected to close by the end of the third quarter. Shares of First Avenue were trading up $2.92 to $12.58.Shares of Open Text (OTEX) fell even after the software company announced a new stock repurchase plan. The software company said that it plans to buy up to 2.4 million shares during the next 12 months. "The board of directors of Open Text believes that the proposed open market purchases of its common shares are in the best interests of Open Text," the company said. Shares were trading down 18 cents to $14.42.
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