NEW YORK (TheStreet) -- Shares of inContact (SAAS) are skyrocketing 53.44% to $13.82 on heavy trading volume late Wednesday afternoon after software company Nice Systems (NICE) said it would acquire the company for about $940 million.
Ra'anana, Israel-based Nice will pay $14 per share in cash. The price represents a 55% premium to inContact's closing price on Tuesday.
"We strongly believe that this transaction best positions the company to execute on our vision of helping our customers deliver exceptional customer experiences, while rewarding our existing stockholders for the work we have achieved to date," inContact CEO Paul Jarman said in a statement earlier today.
Nice plans to finance the deal with cash on hand and with debt of up to $475 million.
The transaction is expected to close before the end of 2016 and is subject to approval from regulators and inContact shareholders.
Nice expects the deal to be accretive to non-GAAP earnings per share in 2017.
inContact is a Salt Lake City-based provider of cloud contact center software and contact center optimization tools.
About 55.55 million of inContact's shares were traded by late this afternoon vs. its average 30-day volume of 526,060 shares per day.
Shares of Nice are rising 4.34% to $66.58 late Wednesday afternoon.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on inContact stock.
The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SAAS