Please ensure Javascript is enabled for purposes of website accessibility

Why Incontact Inc. Stock Rose 53% Today

By Steve Symington - May 18, 2016 at 1:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The cloud-based call center company is being acquired. Here's what investors need to know.

What: Shares of inContact Inc. (NASDAQ: SAAS) were up 53.7% as of 11:00 a.m. ET Wednesday after the cloud contact center software company announced it has entered into a definitive agreement to be acquired by NICE Systems (NICE -0.77%).

So what: NICE will acquire inContact for $14 per share in cash, good for a healthy 55% premium over yesterday's close and a 49% premium to inContact's 30-day volume weighted average price. 

"We strongly believe that this transaction best positions the Company to execute on our vision of helping our customers deliver exceptional customer experiences," added inContact CEO Paul Jarman, "while rewarding our existing stockholders for the work we have achieved to date. We are excited to work with our new business partners at NICE and enter our next chapter of industry leadership."

"We look forward to working with the talented management team and employees to accelerate inContact's customer relationships and strengthen its market position in cloud contact center software," added NICE CEO Barak Eilam. "We worked hard to make this deal happen because we understand the tremendous value that inContact can bring to its customers and the marketplace."

Now what: The deal has already been unanimously approved by inContact's board of directors and, assuming it receives shareholder and regulatory approval, should close in the second half of 2016. The purchase will be funded by a combination of NICE's cash on hand and committed debt financing. 

In the end, I see little stopping this acquisition from going through. So with shares trading within pennies of the agreed acquisition price -- and unless inContact shareholders have owned the stock for almost a year and waiting to sell would result in more favorable long-term capital gains taxes -- I think investors would be wise to take today's profits and put them to work elsewhere.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NICE Ltd. Stock Quote
$198.54 (-0.77%) $-1.54

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.