Shares of Xactly Corp. (NYSE: XTLY) jumped 16% on Tuesday, after the cloud-based enterprise incentive compensation solutions company agreed to be acquired.
More specifically, Xactly has entered into an agreement to be acquired by private-equity firm Vista Equity Partners for $15.65 per share in a deal worth roughly $564 million. That's a 17% premium to Xactly's closing price last Friday, and a 31% premium to its three-month volume-weighted average closing price.
"This announcement represents a very positive event for our stockholders and enables Xactly to build upon its successful 12-year history," stated Xactly founder and CEO Christopher Cabrera. "We are confident that Vista is the ideal partner to accelerate our growth initiatives and enable Xactly to focus on innovation and customer success while forging a new era of incentive compensation management."
The deal still is still subject to regulatory and shareholder approval but is expected to close sometime in the third quarter of this year. With shares trading within pennies of the agreed purchase price, I think Xactly investors would do well to take their profits and put them to work elsewhere.