American Software Raises Bid for Logility

Logility(LGTY Quote) shares are soaring on Monday on the heels of American Software's(AMSWA Quote) increase of its offer to purchase the company.

Shares skyrocketed 35% to $6.94 in afternoon trading, after American Software said it will offer $7.02 a share for all of the outstanding shares of Logility. This is a 40.4% premium over its closing price on March 18.

American Software previously offered $5.10 a share. Currently American Software owns 88% stake in Logility.

Logility's special committee reviewing the tender offer said in a statement that they will recommend that shareholders accept the proposal at the new offer price.

Shares of American Software grew 4% to $5.08 in afternoon trading.