Shares of Oxford Industries (OXM) jumped late after the Atlanta-based fashion apparel maker announced its acquisition of Sugartown Worldwide Inc., which owns the women's brand Lilly Pulitzer.
Financial terms of the deal weren't disclosed in a press release announcing the transaction but Oxford said in a Form 8-K filing with the Securities and Exchange Commission that the all-cash acquisition carried a purchase price of $60 million, and that the deal includes an earnout agreement allowing for the payment of an additional $20 million in cash over the next four years if the acquired assets achieve certain performance targets.
Oxford, whose other brands include Tommy Bahama and Ben Sherman, also said it expects the Lilly Pulitzer business to contribute more than $70 million in sales in fiscal 2011, adding earnings of roughly 40 cents a share to its results.The stock was last quoted at $24.35, up 9.8%, on volume of around 54,000, according to Nasdaq.com. Based on a regular session close at $22.17, the shares had gained 5.5% year-to-date.
TIBCO SoftwareTIBCO Software (TIBX) was a gainer in after-hours action, rising 4% to $22 on volume of around 250,000. After Tuesday's closing bell, the Palo Alto, Calif.-based maker of infrastructure software beat Wall Street's expectations for its fiscal fourth-quarter results handily and announced its board's approval of a $300 million stock buyback program. TIBCO said its non-GAAP profit for the three months ended Nov. 30 came in at $53.8 million, or 31 cents a share, on revenue of $241.2 million, well ahead of the average estimate of analysts polled by Thomson Reuters for earnings of 28 cents a share on revenue of $228.5 million. The company said the new $300 million repurchase authorization replaces its existing program, which still had about $159 million left on it. Based on a regular session close at $21.18, TIBCO shares had gained an impressive 120% so far in 2010, and Wall Street had grown cautious about how much higher the stock could go from those levels. Of the 13 analysts covering the shares, eight had either hold (7) or underperform (1) ratings, and while the remaining five analysts rated the stock a buy, the median 12-month price target of the group stands at $18.50, nearly 13% below current levels. --Written by Michael Baron in New York.
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