SAP has agreed to pay $36 in cash for each Callidus share, resulting in a total enterprise value of $2.4 billion, Liu said in a Wednesday note. The deal price reflects a 10-percent premium over the closing price on Jan. 29 and a 21-percent premium over the 30-day volume weighted average price per share, according to B. Riley.
The valuation suggested by the transaction price is a favorable outcome for the company's shareholders, the analyst said. The deal represents a premium to what rival Xactly Corp (NYSE: XTLY) fetched when it sold itself to Vista Equity Partners.
"In regards to the potential for a higher bid, we surmise that other strategic vendors like salesforce.com, inc. (NYSE: CRM) or Oracle Corporation (NYSE: ORCL) have had ample opportunity to pursue CALD, and the final purchase price suggests a thorough process," Liu said.
At this juncture, B. Riley does not see the possibility of a rival offer emerging.
Callidus Software is scheduled to release its fourth-quarter results after the market close Feb. 8, with the company expecting pro forma EPS of11-12 cents on revenues of $65 million to $66 million.
The Price Action
Shares of Callidus Software were up about 79 percent over the year up until the announcement of the deal.
Shares were up 0.28 percent at $36.05 at the time of publication Wednesday afternoon.
NOW Is The Time; Analyst Explains Why ServiceNow Is Still A Buy
Morgan Stanley Upgrades Oracle, Says Upside Exists In Earnings Growth
Latest Ratings for CALD
|Jan 2018||B. Riley||Downgrades||Buy||Neutral|
|Jan 2018||Lake Street||Downgrades||Buy||Hold|
|Nov 2017||First Analysis||Initiates Coverage On||Equal-Weight|
View More Analyst Ratings for CALD
View the Latest Analyst Ratings
See more from Benzinga
- AMD's Earnings Aren't Enough To Support Its Valuation, Analyst Says
- Samsung Enters The Cryptocurrency Mining Space, Announces First-Ever Stock Split
- 3 Reasons Why Liberty Formula One Was Upgraded By Morgan Stanley
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.