NEW YORK (TheStreet) -- Shares of Conversant Inc. (CNVR) are jumping 33.47% to $35.65 in after-hours trading on Thursday, following Alliance Data Systems Corp.'s (ADS) announcement that it has entered into a definitive agreement to purchase the company for approximately $2.3 billion.
Alliance Data Systems is a global provider of data-driven marketing and loyalty solution. Conversant is a digital marketing company.
Alliance Data will acquire all outstanding shares of the company for $35 per share.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
"The acquisition of Conversant establishes a truly unique end-to-end marketing services company that will empower clients to more effectively market to their customers across all channels," Alliance Data said.
Alliance Data said it's expecting substantial accretion from the transaction of 50 cents per share the first year, and 75 cents per share the second year.
Shares of Alliance Data are higher by 2.66% to $259.59 in after-hours trading today.
Separately, TheStreet Ratings team rates CONVERSANT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONVERSANT INC (CNVR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."