Art Technology Group, Inc’s share price heavily surges backed by acquisition of Oracle Corporation
Art Technology Group Inc (NASDAQ: ARTG) last closed on $5.95after hitting the day’s high of $6.0 in its last trading session. The surge in price with substantial increase in its volume clearly reflects a strong bullish trend movement in the share price.
This is not it ARTG also hits it new high of $6.0 in last one year. The argument can be easily established that the traders and investors are extremely enthusiastic about the company’s future.
In last one month the share price has increased by 42 percent. But the question arises will bullish rally will continue for ARTG.
The bullish rally for ARTG is backed much by its acquisition news. Art Technology Group Inc is to be acquired by Oracle Corporation (NASDAQ: ORCL) in a $1 billion cash deal. Oracle Corp is acquiring ARTG to enhance its software product line and to boost its online business.
The $1 billion cash deal was announced on Monday turning out to be at $6 per share for each share of ARTG which was 46 percent premium over the Monday’s closing price.
The acquisition deal is going to be finalized after the approval from regulatory bodies and the company’s share holders. It is expected that the acquisition will be completed by the end of the next year.
Art Technology Group stands in profit with net profit of $4.2 million or earnings per share of $0.03 for the third quarter, 2010 as compared to net income of $4.0 million for the same period last year. The company’s revenue has been increased by 16 percent to $50.3 million as compared to last year.
Based in Cambridge, Mass ARTG has been offering its products and services to big name of industry such as AT&T, Best Buy and CVS.