Actuate Corp (NASDAQ:BIRT) provides software and services that support the development and deployment of custom business intelligence. Its products also support information applications. The company has products such as AcuateOne and Xenos solutions. Actuate is an established provider that boasts more than 20 years of expertise in its field.
Financial performance highlight
The company disclosed revenue of $24.27 million and earnings per share of $0.01 in the most recent quarter. While it beat the analysts estimate on the earnings front during the quarter, revenue figure fell short of expectation. Analysts expected Actuate Corp (NASDAQ:BIRT) to post a loss of $0.03 per share for the quarter and revenue of $24.50.
By comparison, Actuate Corp (NASDAQ:BIRT)’s performance in the most recent quarter was also weaker than the same quarter a year earlier. Specifically, revenue declined almost 25%.
On December 5, Actuate Corp (NASDAQ:BIRT) agreed to be acquired by Open Text Corporation (USA) (NASDAQ:OTEX), according to TheStreet. The boards of the two companies have already approved the deal, which values Actuate at $6.60 per share. Open Text is expected to pay a total of about $330 million using cash in hand to close the deal.
Open Text Corporation (USA) (NASDAQ:OTEX) will commence a tender offer for the shares of Actuate Corp (NASDAQ:BIRT) as it hopes to close the acquisition in 3Q2015. Once the transaction is closed, Open Text predicts that the acquisition will contribute to its earnings in fiscal 2015.
Open Text is a Canadian company involved in software and services provision for organizations. The company is looking for new business opportunities, especially in the markets that it does not already have a big presence. Its products help with sharing of business information. It expects the acquisition of Actuate Corp (NASDAQ:BIRT) to help it enter the growing market of business intelligence and information application.
No stock promotion efforts have been cited in Actuate Corp (NASDAQ:BIRT).
Actuate Corp (NASDAQ:BIRT) ended the last session at $6.56, with an 87% gain after the announcement of the company getting acquired by OpenText Corp. (NASDAQ:OTEX) for $6.60 per share.
The price action of the last 12 months clearly shows that the most important technical characteristic of this stock has been the Gaps. The Friday gap up was the third gap in this calendar year.
So expect the upper boundary of the current gap around $7.10 to act as a resistance and the lower boundary around $6.40-20 as the support area.