Actuate shares up, analyst upbeat on Xenos buyout

AP News
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Posted: Dec 28, 2009 2:30 PM

Business software maker Actuate Corp. jumped Monday after an analyst said Actuate's takeover of Xenos Group Inc., another software company, should help it turn around declining revenue.

Shares of Actuate climbed 48 cents, or 12 percent, to $4.49 in afternoon trading.

Roth Capital Partners analyst Nathan Schneiderman wrote in a research note Monday that the Xenos deal, plus overall improvement in the economy that should thaw corporate technology budgets, should yield growth in Actuate's revenue in the next two years.

San Mateo, Calif.-based Actuate should be able to cross-sell Xenos products to its existing large financial-services customers, the analyst wrote. Actuate agreed to buy Xenos on Dec. 8 for $35.5 million.

Schneiderman upgraded the stock to "Buy" from "Hold," and wrote that the current low price makes it an attractive time to buy.