By late afternoon, shares had added 8.3% to $7.71.
The company which develops software for online product ratings and reviews said it would sell the unit to Viewpoints for an undisclosed amount. The deal follows on from a court ruling earlier in the year from a Department of Justice antitrust suit.
"Since the district court issued its ruling in favor of the Department of Justice, we have been engaged in a thoughtful process to identify and reach agreement with an appropriate entity to which we could divest the PowerReviews business consistent with the Court's decision and views expressed by the DOJ," said Bazaarvoice CEO Gene Austin in a statement.
Bazaarvoice originally bought PowerReviews in 2012 in a transaction consisting of $31 million in cash, 6.4 million shares and 1.6 million stock options.
The transaction is expected to be completed in the first quarter of Bazaarvoice's fiscal 2015 ending July, subject to regulatory approval and the completion of negotiations.
TheStreet Ratings team rates BAZAARVOICE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BAZAARVOICE INC (BV) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow."