Spyglass, Inc. (Nasdaq: SPYG) rose 12 1/2 to close at 82 3/8 Monday after the company agreed to be acquired by OpenTV Corp. (Nasdaq: OPTV) for stock valued at $2.5 billion.
Spyglass’ Prism software reformats Web content for display on set-top boxes, mobile phones and other non-PC devices. Current customers include GTE, Microsoft, Motorola, NEC, Nokia and Sony.
The acquisition will allow OpenTV, which makes software for digital interactive television, to expand into the Internet and wireless communications markets.
Spyglass shareholders will receive 0.7236 of an OpenTV Series A ordinary share, valuing the company at about $122.28 per share and giving Spyglass shareholders an 18 percent stake in the combined company. Both companies’ boards have approved the transaction, which is on target to close in three or four months.
OpenTV shares fell 39 61/64 to 129 3/64.