Oracle's RightNow Buy Approved - Analyst Blog
29 12월 2011 - 2:04AM
Zacks
At a recent special meeting conducted at
RightNow Technologies, Inc.
(RNOW), its
shareholders finally gave their whole-hearted consent for the
company’s merger with Oracle Corporation
(ORCL). Almost
99.8% of the shares voted in favor of the acquisition agreement
represented around 87% of shares outstanding for
RNOW as of
November 8, 2011.
Previously agreed upon terms were retained as Oracle will pay
around $1.5 billion net in cash and debt and $43.0/share, which was
at a premium of close to 20% on RNOW’s closing price of $35.96 on October
21, 2011.
Oracle is a computer technology firm which develops and markets
database management systems and other enterprise software products
and hardware systems catering to clients worldwide. In 2007, the
company earned the third largest software revenue after
Microsoft Corp. (MSFT) and International Business
Missions Corp. (IBM).
The acquisition was proposed long back on October 24, 2011 and
since then, the future of RightNow Tech. and its shareholders’
interests were hanging fire. The transaction, contingent on a
number of stockholders’ consents, regulatory approvals and
customary closing regulations was subject to unavoidable delay
which had widespread negative implications with regard to both
external and internal business relationships of the company.
Moreover, if the transaction were to be canceled, it would have
resulted in the payment of approximately $59.7 million as
termination fees. This would have been tremendously detrimental for
the company’s expenditures, not to mention the bad publicity it
would have earned, which would have undermined the company’s
goodwill.
Earlier, RightNow reported results for the third quarter.
Revenues were up 19% year over year to around $57.7 million and net
diluted earnings per share came in at 4 cents falling from 9 cents
in the previous year quarter. The company generated cash and
investment balances of about $242 million.
RightNow Technologies Inc., established in 1995 and
headquartered in Bozeman, Montana, is a leader in providing
customer relationship management (CRM) software solutions aimed to
refine and modernize customer service operations. These services
cater to industries including technology, consumer goods, public
sector, manufacturing and many others. It has clients all over the
world with a current employee database of 1,033.
We have a Neutral recommendation on RightNow Technologies Inc. over
the long term. Currently, RNOW has a Zacks #3 Rank, which implies a Hold rating
on a short-term basis.
INTL BUS MACH (IBM): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
RIGHTNOW TECH (RNOW): Free Stock Analysis Report
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Rightnow Technologies, Inc. (MM) (NASDAQ:RNOW)
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Rightnow Technologies, Inc. (MM) (NASDAQ:RNOW)
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