Boston, MA 10/01/2013 (wallstreetpr) – The Active Network, Inc. (NYSE:ACTV), which is a California, US based company serves other businesses worldwide and help them grow and expand their operations with the help of their Active Works cloud technology. The event management software making company which went public just two years ago is all set to be acquired by Vista Equity Partners, a private equity firm also based in California. The acquisition deal is presently valued at $1.05 billion in cash.
Vista will soon be commencing a tender offer to acquire all the outstanding shares of The Active Network at an individual share price of $14.50. The offer represents a premium of around 27.2% over last Friday’s market closing price of ACTV stock. Active, which has been operating since the past 15 years and serves some of the top notch companies in the information technology sector haven’t registered any annual profit till now.
In May 2013, many key officials of Active resigned from their positions because of their inefficiency in bringing the company into the profit figures. However, they still continue to be a part of the board. Jon Belmonte, Interim CEO of Active recently commented on the future prospects of the probable acquisition. He said, “The partnership with Vista will position us to execute on our strategy and further enhance our industry leadership.”
The deal will allow the target company Active to go private and is likely to be materialized by the end of the fourth quarter. However, chances for the company to become public again are also there. There were several speculations in the market related to the company’s takeover. Some of the leading software making giants also did calculations related to the justifiability if they go for the takeover deal. It is mainly because of such speculations the share prices of ACTV almost doubled this year. It registered an increase of 25.53% to $14.31 when markets closed yesterday.
