Thursday, March 28, 2013

Why Advent Software Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Advent Software (NASDAQ: ADVS  ) have popped today by as much as 12% on reports that the company is exploring a possible sale.

So what: Reuters exclusively reported that Advent has tapped investment bank Qatalyst Partners to spearhead a possible sale of the company. The data software maker had a market value of $1.3 billion before the move, and there has reportedly been some interest from multiple private equity firms.

Now what: The company is at the second round of bidding, according to sources, but there is still a large gap between what the company is looking for and what prospective buyers are willing to pay. The auction may not lead to a deal due to this spread, and neither Advent nor Qatalyst responded to requests for comment. Shares have tapped fresh 52-week highs on the speculation.

Interested in more info on Advent Software? Add it to your watchlist by clicking here.

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