JNI Shoots Up on Buyout
It will be acquired by Applied Micro for about $190 million.
Updated from Aug. 28
Shares of
JNI
(JNIC)
shot up Friday after the maker of hardware and software for storage-area networks agreed to be acquired by
TheStreet Recommends
Applied Micro Circuits
(AMCC)
for about $190 million.
JNI was recently up $1.10, or 19%, to $6.80. Applied Micro was down 15 cents, or 2.5%, to $5.78.
According to the agreement, Applied will pay $7 a share in cash for each share of JNI. Applied also will assume all JNI employee stock options. As of June 30, JNI's assets included about $90 million of cash and investments.
The boards of both companies have approved the acquisition, and Applied expects to close the transaction in the fourth quarter of this calendar year.
