Omniture Deal Delights
Omniture (OMTR) is cementing its market dominance.
On Thursday, the Web analytics company said it would acquire rival Visual Sciences (VSCN) for $394 million in a cash-and-stock deal.
Omniture also forecast better-than-expected third-quarter results.
The company's move for Visual Sciences extends Omniture's lead in the rapidly growing high-end analytics market and was met with a wave of support on Wall Street. The stock was recently up more than 14% to $35.96. These gains follow a run-up of 120% since the start of the year.The deal makes sense from both a financial and strategic perspective, Pacific Crest securities analyst Chad Bartley wrote in a research note Friday. Both Omniture and Visual Sciences use an on-demand software model, which could lead to substantial cost savings. Bringing Visual Sciences customers to Omniture's platform and up-selling them could also open the door for more revenue and earnings. The move will bring more than 4,000 new customers to Omniture, Bartley noted. And it could take away pressure on Omniture to lower prices. Indeed, the deal was seen as promising enough to have some analysts change their opinion on Omniture. ThinkEquity analyst Michael Huang upgraded the stock to a buy with a $38 price target because of the deal, saying that it would allow Omniture to out-muscle the competition.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV