The deal with data analytics company Qlik Technologies Inc. is good for big data software services provider Attunity Ltd., according to CEO Shimon Alon. On Thursday, the two companies announced
has agreed to pay $560 million for Nasdaq-listed Attunity: $23.50 in cash per share, an 18% premium on Attunity’s $19.93 per share closing price on Wednesday. Attunity closed at $23.54 on Friday.
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In a Thursday report to clients, Needham analyst Jack Andrews wrote the acquisition is at a “discount” compared to other companies in the sector, and to stock valuation Attunity previously achieved, adding that a competing offer at better valuation could be made for Attunity. Tech companies like Amazon, Microsoft, and Alphabet could be a better fit and bring better value to shareholders, he wrote.
Founded in 1988, Attunity offers software for the management, sharing, and distribution of big data across enterprise platforms and the cloud. The company provides software directly and indirectly through partners including Microsoft, Oracle, and IBM. Alon, 70, became involved in Attunity in 2004 after investing alongside other backers $5 million for a 20% group stake in Attunity, later increased to 40%. During his time with Attunity, the company faced liquidation issues and debts to bondholders.
Shareholders should be happy with the Qlik deal, Alon said in an interview with Calcalist.
“There will always be someone who will say, ‘why not more?’.”
According to Alon, the large majority of Attunity’s investors benefit greatly from the deal. “95% of them made a great deal of money,” he said.
Attunity’s last issuance offering was in December 2017, at $6.75 per share. “We created enormous value, especially over the last year,” Alon said.
Attunity’s shareholders are set to vote on the deal during the next meeting, in around 80 days. If approved, Alon’s 6.44% stake will see him make around $36 million.