Actuate's New Pricing Model Doesn't Fix Underlying Issue
Painting Investors An Accurate Picture Of Actuate
Dec. 5, 2014, 9:38 AM
- Through a tender offer approved by both companies, Open Text (NASDAQ:OTEX) is acquiring business intelligence/analytics software vendor Actuate (NASDAQ:BIRT) for $330M ($6.60/share) in cash, or an enterprise value of $272M. The price represents an 89% premium to Actuate's Thursday close.
- The deal is expected to close in Q1 2015 (Open Text's FQ3), and be accretive in FY15 (ends June '15).
- Through it, Open Text enters a BI market that's seeing healthy growth amid broader corporate interest in analytics and data mining solutions, but is also very competitive; IBM, SAP, Oracle, Microsoft, Tableau (growing rapidly), and Qlik are among the other participating firms.
- In a presentation (.pdf), Open Text declares Actuate "the leader in personalized analytics and insights," talks up the ability to cross-sell Actuate's products to Open Text's existing content management/BPM software base, and suggests there's also an opportunity to cross-sell to Actuate's 3.5M developers.
Actuate Corp Software provides software services to BIRT developers and OEMs who build scalable and secure solutions. Its trademark products are; BIRT, BIRT iHub Visualization Platform, BIRT Analytics, BIRT Content Services, and BIRT iHub onDemand.
Industry: Application Software
Country: United States
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