NEW YORK (TheStreet) -- Shares of ClickSoftware Technologies (CKSW) were gaining 26.5% to $12.42 on heavy trading volume Thursday after the company announced it will be acquired by private equity firm Francisco Partners Management.
Francisco Partners will pay $12.65 a share in cash to acquire the automated mobile workforce management and optimization solutions provider in a deal valued at about $438 million. Following the acquisition ClickSoftware will become a private company.
The two companies expect the deal to close in July.
"After a comprehensive evaluation and review of strategic alternatives designed to enhance shareholder value, we are confident this agreement represents a favorable outcome for our shareholders, providing them with immediate, substantial cash value," ClickSoftware CEO Dr. Moshe BeBassat said in a statement.
About 8 million shares of ClickSoftware were traded by 3:40 p.m. Thursday, well above the company's average trading volume of about 119,000 shares a day.
TheStreet Ratings team rates CLICKSOFTWARE TECHNOLOGIES as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLICKSOFTWARE TECHNOLOGIES (CKSW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.7%. Since the same quarter one year prior, revenues rose by 12.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CKSW's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CKSW has a quick ratio of 2.13, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for CLICKSOFTWARE TECHNOLOGIES is rather high; currently it is at 61.64%. Regardless of CKSW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CKSW's net profit margin of 7.56% is significantly lower than the industry average.
- In its most recent trading session, CKSW has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. This company's share value has not moved any higher or lower since its value 12 months ago.
- Net operating cash flow has significantly decreased to $0.61 million or 68.54% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: CKSW Ratings Report