Boston, MA 10/02/2013 (wallstreetpr) – Active Network Incorporation (ACTV) is a company which provides cloud computing applications based on organizations. The company aims to serve a range of customer groups including community activities, business solutions, sports and outdoor. The company primary operates in two segments, i.e. technology revenue segment and marketing services revenue segment. In the last quarter the company’s share rose 25%. But in the last few weeks the noticed two negative estimate revisions and its earnings have also reduced in the past two months. Based on this scenario the company expects to be in trouble in the future which will affect its operations, growth and position.
The Private Equity firm Vista Equity Partners will acquire the event management software maker company, Active Network at a value of $904 million. The acquiring company, Vista Equity, will make a tender offer of $14.50 per share, which represents 27.2% premium to the acquired firm, Active Network. ACTV develops software which helps users sign up for marathons, reserve campsites and buy hunting or fishing licenses. The company earns most of its revenue from the fees paid by the participants for reservation and registration. The company had 61.68 million of shares outstanding as on May 2013. Walt Disney and InterActiveCorp, who holds 10% and 7.4% stake in the company respectively.
The company bought the security software vendor Websense Inc. in May 2013 for $907 million, and acquired the fleet management software unit of the chipmaker Qualcomm Inc in Aug 2013 for about $800 million. Thus, the operations of the company signify that the company laid a strategic and planned approach towards its business operation. This is a positive point which attracted the acquirers towards the acquisitions of the company ACTV. The acquirers also noticed that the company profits were not up to mark in the previous months which gave them a strong ground to put their proposal.
It is expected that the acquisition, under the guidance of financial advisors and capital markets, will surely prove to be beneficial not only to the companies but also to the market, and thus might results in foster company’s growth.
