Monday's Tech Winners & Losers
Shares of Netsmart Technologies (NTST) were among technology's winners Monday, jumping 9% after the software company agreed to be acquired by two private equity firms for about $115 million.
Insight Venture Partners and Bessemer Venture Partners will pay $16.50 a share in cash for Netsmart, representing a 12% premium over Friday's closing price of $14.70. The deal is expected to close in early 2007. "We believe this transaction will enable us to better scale for anticipated growth, both organically and by acquisition, and will provide us with easier access to capital for new product development and technology innovations to better serve our customers," Netsmart said. Shares were trading up $1.39 to $16.09.
PacificNet (PACT) tumbled 19% after the IT-services company said it swung to a third-quarter loss and slashed its full-year guidance. For the third quarter, the company recorded a loss of $1.1 million, or 10 cents a share, compared with a year-earlier profit of $611,000, or 5 cents a share. Revenue rose to $12.9 million from $11 million.
Looking ahead, PacificNet now sees full-year earnings of $1 million to $1.2 million, with revenue of $60 million to $65 million. Previously, the company predicted earnings of $3.9 million to $4.3 million and revenue of $74 million to $77 million. Shares were trading down $1.20 to $5.
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