Computer Software Innovations, Inc. (OTC:CSWI) almost doubled its market value after the company announced last Friday it had been placed an acquisition offer.
Closing at $0.75 per share, CSWI skyrocketed $0.37, or 97.37%, its highest close since late-June 2011. More than 301 thousand shares of common CSWI stock changed hands setting a new 52-week record.
CSWI’s tremendous run came hard on the heels of a very special announcement. Last Friday, the company reported to have received an acquisition offer by Constellation Software, Inc. (TSX:CSU) regarding CSWI’s total outstanding and preferred stock at a price of $1 per share. While a definitive agreement has yet to be drawn up in writing, investors seem to have given a fairly positive response to the news. However, CSWI is expected to follow up within the next couple of days, which means that the development of the story is unlikely to take long.
Computer Software Innovations, Inc. regards itself as a ‘technology outfitter’ specialized in providing customers with the most effective technology solutions that match their needs.
Although the company seems to have accumulated no cash reserves for the third calendar quarter of 2011, it reported current assets in excess of $14 million and current liabilities of $15.4 million leaving a slight working capital gap. With a D/E ratio of 0.42, CSWI could have trouble raising external capital at a favourable cost. Nevertheless, the prospective acquisition could, if executed, provide brighter perspectives for the company in the immediate future.
