NEW YORK (
) -- Shares of
soared in extended trading on Monday after the Fremont, Calif.-based digital identity technology company agreed to be acquired by Sweden's
Assa Abloy AB
for $162 million.
The deal values shares of ActivIdentity, which provides online authentification and credential management products, at $3.25 each, a consideration that represents a premium of 43% over the stock's closing price of $2.26 on Monday, and 48% over its average closing price over the past 20 trading days, ActivIdentity said.
The stock was last quoted right at $3.25, according to
; although volume was a scant 4,000 shares. The takeout price would still be a shade under ActivIdentity's 52-week high of $3.33, which the shares reached on April 27.
ActivIdentity reported its fiscal third-quarter results on Aug. 5, posting a loss of $200,000, or breakeven on a per share basis, on revenue of $13.6 million for the three months ended June 30. Revenue totaled $42.5 million for the first nine months of the company's fiscal 2010. The company expects the acquisition to close in December.
Also moving after the bell was
, which tumbled after falling short of Wall Street's profit expectations for its first-quarter results and giving a lukewarm outlook for the second quarter. The stock fell to $40.44, down 4.5%, in extended trades on volume of nearly 13,000. Based on a regular session close at $42.34, the shares were already down about 22% so far in 2010.
The Atlanta-based provider of electronic processing services reported a normalized profit of 67 cents a share for the three months ended August 31 on revenue of $440.1 million. The average estimate of analysts polled by
was for earnings of 69 cents a share in the August period on revenue of $438.6 million.
While the company backed an outlook for earnings of $2.67 to $2.77 a share in fiscal 2011 on revenue ranging from $1.735 billion to $1.77 billion, CFO David Mangum said on its conference call that second-quarter earnings are expected to come in "around" the same level as its 67-cent per share performance in the first quarter. Wall Street was looking for a profit of 70 cents a share in the November period.
Mangum went on to say Global Payments sees a "seasonally weaker" third quarter followed by a "quite strong" fourth quarter, but didn't provide a specific quarterly breakdown of the company's per share expectations.
Written by Michael Baron in New York.
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