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ActivIdentity Soars; Global Payments Slides

NEW YORK ( TheStreet) -- Shares of ActivIdentity Corp. (ACTI) soared in extended trading on Monday after the Fremont, Calif.-based digital identity technology company agreed to be acquired by Sweden's Assa Abloy AB for $162 million.

The deal values shares of ActivIdentity, which provides online authentification and credential management products, at $3.25 each, a consideration that represents a premium of 43% over the stock's closing price of $2.26 on Monday, and 48% over its average closing price over the past 20 trading days, ActivIdentity said.

The stock was last quoted right at $3.25, according to; although volume was a scant 4,000 shares. The takeout price would still be a shade under ActivIdentity's 52-week high of $3.33, which the shares reached on April 27.

ActivIdentity reported its fiscal third-quarter results on Aug. 5, posting a loss of $200,000, or breakeven on a per share basis, on revenue of $13.6 million for the three months ended June 30. Revenue totaled $42.5 million for the first nine months of the company's fiscal 2010. The company expects the acquisition to close in December.

Also moving after the bell was Global Payments (GPN), which tumbled after falling short of Wall Street's profit expectations for its first-quarter results and giving a lukewarm outlook for the second quarter. The stock fell to $40.44, down 4.5%, in extended trades on volume of nearly 13,000. Based on a regular session close at $42.34, the shares were already down about 22% so far in 2010.

The Atlanta-based provider of electronic processing services reported a normalized profit of 67 cents a share for the three months ended August 31 on revenue of $440.1 million. The average estimate of analysts polled by Thomson Reuters was for earnings of 69 cents a share in the August period on revenue of $438.6 million.

While the company backed an outlook for earnings of $2.67 to $2.77 a share in fiscal 2011 on revenue ranging from $1.735 billion to $1.77 billion, CFO David Mangum said on its conference call that second-quarter earnings are expected to come in "around" the same level as its 67-cent per share performance in the first quarter. Wall Street was looking for a profit of 70 cents a share in the November period.

Mangum went on to say Global Payments sees a "seasonally weaker" third quarter followed by a "quite strong" fourth quarter, but didn't provide a specific quarterly breakdown of the company's per share expectations.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
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