About a year ago, the security software operator, Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), was trading at about $25 per share. But with the plunge in Nasdaq and the slowing economy, the stock fell to a low of $5.85.
While the stock has come back a bit, it wasn't enough. So, this week, Aladdin decided to go private. The private equity sponsor, Vector Capital, is no stranger to such tech small-cap deals. The firm has a good sense of value for these things.
The buyout comes to about $11.50 per share or $160 million.
For the most part, Aladdin has a solid technology platform, with top clients. According to its latest quarterly report, the company posted revenues of $31.7 million, up 22% over the past year. Net income was $2.9 million, or $0.20 per share. Aladdin has also made a variety of acquisitions, such as for SafeWord and Eutronsec.
While the buyout market remains fairly dormant, there are still some deals getting done – especially for companies that are growing and have attractive valuations.
In today's trading, Aladdin's shares are up 14.58% to $11.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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