Why JDA Software Shares Jumped

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 JDA Software (Nasdaq: JDAS  ) have jumped today by as much as 17%, after the company reported earnings, along with the news that it is being acquired.

So what: Revenue in the third quarter was $164.5 million, which translated into non-GAAP earnings per share of $0.53. That top line result was light relative to consensus estimates, but the bottom line was right on target. More interesting, though, is that privately held RedPrairie is acquiring JDA Software.

Now what: Entities affiliated with RedPrairie are acquiring JDA Software for $45 per share in cash, an 18% premium relative to yesterday's close, that values the company at $1.9 billion. Shares actually rallied yesterday on reports that JDA Software was seeking a buyer. The $45 per share price represents a 33% premium relative to where shares traded prior to these reports. The board has already approved the deal.

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

 
 

Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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