Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, November 22, 2019

Article Excerpt

CARBONITE INC., $22.99, symbol CARB on Nasdaq, provides computer cloud backup and restore solutions. Together with its partners, it supports more than 1.5 million individuals and small businesses around the world. The company first sold shares to the public in August 2011 at $10.00 a share. On November 11, Carbonite announced it had agreed to a $23-a-share takeover offer by Waterloo, Ontario-based Open Text Corp. (symbol OTEX on Toronto). Open Text is paying a total of $1.42 billion for Carbonite. The company’s stock reached as high as $43 in September 2018 but dropped over the past year to as low as $11.66 in September 2019. Investors had their shares move up to just over $18 earlier this month, before jumping to today’s price on the takeover offer. Open Text develops, markets, licenses and supports collaboration and enterprise-information-management software for corporate clients. That software stores, finds, and distributes information across corporate intranet and extranet networks as well as the broader Internet. The acquisition would give Open…

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