Actua Corp (NASDAQ:ACTA)
Actua Corporation (ACTA), a global cloud technology company yesterday announced that they will be selling three of it majority-owned businesses and the total amount combined of the three sales comes to $549 million in cash.
Actua will sell VelocityEHS and Bolt Solutions to CVC growth fund, Envestnet to FolioDynamix.
Actua Corporation CEO’s Comments
“We are pleased to reach these agreements with CVC and Envestnet, as they are the successful result of a comprehensive strategic review process undertaken by our Board, designed to maximize the value of our businesses and provide attractive liquidity for our stockholders,” said Walter Buckley, co-founder, Chief Executive Officer and Chairman of Actua. “With the support of independent financial and legal advisors, we evaluated a number of strategic alternatives and contacted a significant number of financial and strategic buyers. We believe these transactions are a testament to the high-quality SaaS businesses that Actua has built through tactical investments in talent, sales, marketing and product development. We are confident that VelocityEHS, Bolt Solutions and FolioDynamix will continue to serve their customers well and thrive under their new owners. Most importantly, in our quest to maximize stockholder value, we believe these transactions are the optimal outcome for our stockholders and deliver significant cash value for their investment in Actua.” Globe Newswire
ACTA Technical Analysis
ACTA opened trading yesterday at $12.40 which was up from the previous day’s trading close of $12.35. Shares closed trading yesterday at $12.25 and spiked up after market to $15.10, equivalent to a 23% increase from the closing price.
Taking a look at the daily chart we can see the last time ACTA traded above these levels we have to go back to March 30th, 2015 when it traded at $15.52. Taking a closer look at the daily chart we can see that before the spike up ACTA had been in an overall downward trend dating back to June 2nd when it traded at $14.60. ACTA has a float of 27.69 million shares and traded below the normal daily trading volume on Monday.
For trading purposes, I would like to see ACTA open trading on Tuesday above $14.15 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Actua Corporation operates as a multi-vertical cloud technology company that creates value for customers and provides transformative efficiency to vertical markets worldwide. The company operates through two segments, Vertical Cloud and Vertical Cloud (Venture).
It provides Bolt, a cloud-based platform that allows large insurance carrier-agencies, independent insurance agents, and other insurance-based organizations with access to a range of commercial and personal property, and casualty insurance products.
The company also offers FolioDynamix, a cloud-based wealth management technology platform and advisory solutions for managing the wealth management lifecycle across various types of investment programs for wealth management service providers and financial advisors; and VelocityEHS, a platform for set of cloud-based environmental, health, and safety tools, which offers chemical management applications; and assists businesses in identifying, managing, and reducing workplace and environmental hazards, as well as allow customers to gain visibility and control risk in the areas of incident management, audit and inspection training, compliance management, risk analysis, ergonomics, greenhouse gas reporting, and metrics and reporting.
In addition, it operates a cloud-based healthcare payments network focused on healthcare providers, payers, and patients; and a cloud-based transcript exchange and intelligence platform that enables the exchange of electronic transcripts and other student records among schools, universities, state education agencies, and individuals.
The company was formerly known as ICG Group, Inc. and changed its name to Actua Corporation in September 2014. Actua Corporation was founded in 1996 and is headquartered in Radnor, Pennsylvania.”