- In an SA Pro article (embargoed until 11:15AM ET Wednesday), contributor Akram's Razor raises the possibility Dan Loeb will push Tibco (TIBX +3.6%) to do a spinoff/IPO for its fast-growing Business Optimization unit. Loeb disclosed a 5M-share (3%+) stake in Tibco in his Q2 13F.
- The author observes that while revenue for Tibco's mainstay SOA and Core Infrastructure (middleware) unit fell 21% Y/Y in 1H, the Business Optimization unit, which includes Tibco's popular Spotfire analytics/data visualization platform, posted 23% rev. growth. Spotfire sales rose 30% in the June quarter.
- He also points out Tibco is trading at a major discount to richly-valued analytics software rivals Qlik and Tableau thanks to its middleware weakness. "What you get is this nice core cash cow business burying the multiple of the whole company."
- Tibco has asserted there are synergies between its middleware ops and Spotfire. However, Akram's Razor sees no reason "separating out the BO division in ... an EMC/VMW manner would hurt application integration sales." He estimates a 10% equity carve-out would deliver "25%-40% upside."
Tibco rallies; SA Pro contributor thinks Loeb will try to unlock value
Sep 10 2013, 12:40 ET