Posts Tagged ‘Financial Stocks’

Fundtech Ltd. (FNDT) mulls new offer, shares stronger

Thursday, September 15th, 2011

Fundtech Ltd. (Nasdaq: FNDT) U.S.-listed shares climbed 31.7% to $23.13 after the Israeli financial services firm said an offer from private-equity company GTCR topped an all-stock bid from S1 Corp. Volume for the stock topped 793,000 shares, way more than the daily average of around 62,500.

A news release out Sept. 15 noted that the board of directors of Fundtech, whose American headquarters are located in Jersey City, has determined that a binding offer it has received from GTCR Fund X/A LP and its affiliated entities, which contemplates the acquisition of all of Fundtech’s outstanding ordinary shares at $23.33 per share in cash, constitutes a “Company Superior Offer” under Fundtech’s previously announced merger agreement with S1 Corporation.

Under the terms of GTCR’s binding offer, an entity formed by GTCR would merge with Fundtech under the laws of the State of Israel, and as a result of the merger all outstanding ordinary shares of Fundtech would be converted into the right to receive $23.33 per share in cash.

Fundtech was founded in 1993, and is a leading provider of software and services to banks of all sizes around the world.

Penn Millers Holding Corporation (PMIC) to be bought, shares take off

Thursday, September 8th, 2011

Penn Millers Holding Corporation (Nasdaq: PMIC) shares vaulted 23.4% as Thursday’s session wound to a close to $20.12, on word of a possible takeover by ACE Ltd. Volume for the stock totaled 581,000 shares, or about 100 times its daily average.

A news release out Sept. 8 revealed that the company, which provides property and casualty insurance through its wholly owned subsidiary, Penn Millers Insurance Company, today announced that it has entered into a definitive agreement on Sept. 7, to be acquired by a subsidiary of ACE Limited for $20.50 per share in cash.

The purchase price represents a premium of 39% over the $14.75 per share closing price of PMIC on August 15, the date of its announcement that it was reviewing strategic alternatives. It also represents approximately 101% of book value (108% of fully diluted book value) of Penn Millers at June 30.

The release quotes Penn Millers CEO Douglas A. Gaudet thus: “This transaction delivers outstanding returns to our shareholders and additional benefits to our policyholders, agents, brokers, and employees. We are excited to join ACE, one of the largest and most respected insurance companies in the world.

Gaudet continued, “We believe ACE’s national platform and product capabilities will provide strong growth opportunities to our well-established agency network. Our state-of-the-art loss control and claim services in agribusiness and other specialty niches will round out ACE’s agricultural insurance capabilities.”

Based in Wilkes-Barre, Pa. Penn Millers Holding Corporation provides property and casualty insurance through its wholly owned subsidiary, Penn Millers Insurance Company.

Zillow Inc. (Z) stock climbs on quarterly numbers

Thursday, August 25th, 2011

Zillow Inc. (Nasdaq: Z) shares gained 19.9% to $31.49, a day after the online real-estate information provider reported its first quarterly financial results since going public in late July. Volume for the stock came in at 436,000 shares, just nosing out its full-day average.

A news release posted August 24 reported quarterly revenues increased 116% to $15.8 million from $7.3 million in the second quarter of 2010.

Marketplace revenues increased 269% to $9.7 million from $2.6 million in the second quarter of 2010. Display revenues increased 30% to $6.1 million from $4.7 million in the second quarter of 2010.

GAAP net income for the second quarter 2011 was $1.6 million, compared to a net loss of $2.0 million in the same period a year ago and a net loss of $0.8 million in the first quarter of 2011.

Said CEO Spencer Rascoff in the same piece, “The second quarter was outstanding for Zillow® with record revenues, traffic and mobile usage. It marks our first profitable quarter on a GAAP net income basis and our fourth consecutive profitable quarter on an Adjusted EBITDA basis. We’re extremely pleased with our progress and rapid growth, yet we believe we’ve only scratched the surface of our opportunity.”

The Seattle-based Zillow calls itself the leading real estate information marketplace, providing vital information about homes, real estate listings and mortgages through its website and mobile applications, enabling homeowners, buyers, sellers and renters to connect with real estate and mortgage professionals best suited to meet their needs.

MarketAxess Holdings Inc. (MKTX) hits stock high amid takeover rumors

Wednesday, August 17th, 2011

MarketAxess Holdings Inc. (Nasdaq: MKTX) shares gained 14.3% to $27.48, after The Wall Street Journal on Tuesday reported on its website that the operator of an electronic bond-trading platform might be on the auction block. Volume for the stock was 1.7 million shares, or about 11 times its normal daily volume.

The Journal piece, citing folks close to the situation and substantiated Wednesday by Reuters, said that if MarketAxess decides on a sale, the company could fetch around $1.5 billion.

Though the names of the interested parties are not known, potential bidders might include Bloomberg LP, SunGard Data Systems BAINSD.UL and private equity players, said Niamh Alexander, an analyst with Keefe, Bruyette & Woods.

“We also consider exchanges but the price might be relatively high for them, nonetheless an all-cash transaction by ICE or CME could still be accretive,” Alexander said in the Reuters story.

MarketAxess is big in electronic trading of corporate bonds and is making headway in credit derivatives ahead of planned regulations that will shift more of that market toward venues like MarketAxess.

Emdeon Inc. (EM) continues to prospers on takeover by Blackstone

Monday, August 8th, 2011

Late last week, Emdeon Inc. (NYSE: EM) shares climbed13.5% to $18.44 after the healthcare information-technology provider agreed to be bought by private-equity firm Blackstone Group. Opening the week today, Emdeon share prices have relented slightly, still hovering over the $17.00 mark.

A news release published early August 4 said the Nashville-based Emdeon, a leading provider of healthcare revenue and payment cycle management and clinical information exchange solutions, had entered into a definitive merger agreement with Blackstone, under which this Blackstone fund will acquire a controlling interest in Emdeon in a transaction valued at approximately $3 billion that will result in Emdeon becoming a private company. Hellman Friedman will maintain a significant minority equity interest in Emdeon.

Under the terms of the merger agreement, holders of Emdeon common stock will receive $19.00 per share in cash. Emdeon’s Board of Directors has unanimously approved the merger agreement and is recommending that Emdeon’s stockholders adopt the merger agreement.

Emdeon CEO George Lazenby was quoted in the release as saying, “This transaction provides for a great return for our investors. We are excited about the opportunity to move forward with two excellent investors in Blackstone and Hellman Friedman. They each have an in-depth understanding of our business and industry, and will be tremendous partners as we continue to pursue our strategy of making healthcare efficient.

Lazenby concluded, “We are looking forward to building upon our leadership position in healthcare information technology and services, made possible by the continued support of our customers and the dedication and commitment of our employees.”

Emdeon is a leading provider of revenue and payment cycle management solutions, connecting payers, providers and patients in the system. Emdeon’s product and service offerings integrate and automate key business and administrative functions of its payer and provider customers throughout the patient encounter.