Why Tibco Software (TIBX) Stock Is Up Today

NEW YORK (TheStreet) -- Tibco Software  (TIBX) was gaining 6.5% to $20.23 Wednesday following reports that private equity firms are competing to buy the business software company.

Vista Equity Partners and Thomas Bravo are a part of a small group of private equity firms vying for the opportunity to acquire Tibco, according to Reuters.

Tibco will reportedly review the binding offers from the competing firms in the coming weeks. There is no certainty the company will sell itself, despite pressure from activist investors, according to Reuters' sources.

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Earlier this month Tibco announced it hired Goldman Sachs (GS) to help it explore its strategic alternatives.

TheStreet Ratings team rates TIBCO SOFTWARE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate TIBCO SOFTWARE INC (TIBX) 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

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