Customer relationship software company E.piphany’s (Nasdaq: EPNY) acquisition of online marketing solutions company RightPoint paid off in a major way on Tuesday in the stock market. Before Internet companies seemed to dominate Wall Street, acquisitions rarely boosted the stock price of the company doing the buying. In the Web world, however, pretty much anything that extends your leadership position and raises awareness of your brand is applauded by investors. Shares of E.piphany thundered ahead more than 40 percent on Tuesday, gaining 45-1/4 to an all-time closing high of 157-3/4.
To get an idea of how significant this gain is, consider this: E.piphany will issue about 3.5 million shares of stock in exchange for RightPoint. Before Tuesday’s gain, the stock was worth about $393 million. After the gain, the stock was worth about $552 million. Meanwhile, E.piphany is up almost 900 percent from its September 22nd initial public offering price of $16. In case you haven’t noticed, e-commerce software stocks are where many of the biggest gains seem to be happening right now.
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