Activist highlights ACI’s prospects

Article Excerpt

ACI WORLDWIDE, $24.32, is a buy. The company (Nasdaq symbol ACIW; TSINetwork Rating: Extra Risk) (www.aciworldwide.com; Shares o/s: 116.1 million; Market cap: $2.9 billion; No divds.) has attracted increased interest from activist investor Starboard Value LP. Starboard now holds a 9% stake in ACI. That includes Starboard’s recent move to add 600,000 ACI shares, bringing its total holding to 2 million shares. Starboard purchased the shares on the belief that they are undervalued and an attractive investment opportunity. However, the activist is known for replacing board members who it feels are under-contributing. Whether or not ACI will make any changes based on Starboard’s involvement is uncertain at this point. But either way, the activist’s involvement does serve to highlight ACI’s investment appeal. ACI Worldwide is a buy. buy…

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