This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Deal: Active Network Considers 'Expressions Of Interest'

Stocks in this article: ACTV

NEW YORK ( TheStreet) --Shares of Active Network (ACTV) surged 24.33% to $10.33 on Friday, following news the event and activity management company is officially on the block, upon receiving inquiries from unnamed third parties.

As it noted in its second-quarter earnings announcement on Aug. 1, Active said it has created a committee to explore strategic alternatives.

Citigroup has been retained to serve as financial advisor throughout the process.

"The company has received a number of expressions of interest from outside parties, ranging from an investment in Active Network to an acquisition of the company," Jon Belmonte, interim CEO of Active, said in the company's earnings call. "The Strategic Transactions Committee and the entire Board of Directors intend to evaluate all options carefully in order to maximize shareholder value, including the continued execution of its stand-alone plan," Belmonte said in a statement.

The San Diego-based company's cloud-based technologies offer processing and management services for events, conferences, and other settings including campgrounds and golf clubs.

Though Active is the largest company in the event management space, its competition includes Seventy Event Media Group and Eventbrite.

Active has entered a number of markets over the past few years through acquisitions, Sequin said. Rather than trying to win over a competitor's customers, Active's found it more cost effective to simply buy certain companies, he said. For instance, on Jan. 5, 2012, Active acquired corporate meeting manager StarCite for almost $58 million in cash and stock. It purchased online church management software provider Fellowship Technologies, on Feb. 8, 2011, for undisclosed terms.

Active, which said a third-party transaction coming out of its review was not guaranteed, declined to comment further.

The company posted a second-quarter loss of $4.5 million on revenue of $119.5 million, as compared to a $2.3 million loss $108.2 in revenue for the same time the year before.

Andre Sequin, research analyst at RBC Capital Markets, said the three most likely outcomes of the review include a take-private deal, a strategic investment by a partner, or a buyout of the company.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs