NEW YORK (TheStreet) -- Shares of WiFi networking company Meru Networks (MERU) are higher by 14.75% to $1.60 on heavy volume in mid-morning trading on Wednesday, after announcing it is being acquired by cyber security solutions provider Fortinet Inc. (FTNT) for approximately $44 million.
So far today, 4.37 million shares of Meru Networks have exchanged hands as compared to its average daily volume of 161,000 shares.
"The combination of Fortinet and Meru is expected to strengthen our position in the overall enterprise wireless market, addressing the requirements of CIOs to provide secure, uninterrupted connectivity for their highly mobile end-users," Meru Networks CEO Dr. Bami Bastani said in a statement announcing the deal.
Fortinet will pay $1.63 per Meru Networks share and the companies expect transaction to close during the 2015 third quarter.
Shares of Fortinet are up by 0.28% to $39.40 this morning.
Separately, TheStreet Ratings team rates MERU NETWORKS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MERU NETWORKS INC (MERU) a SELL. This is driven by some concerns, 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. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."