Shares of MobileIron rose 6.2% on Monday after the mobile-centric security platform provider agreed to be acquired by software company Ivanti Inc. in a cash deal valued at $872 million.
Under the terms of the deal, Ivanti will pay $7.05 in cash per share to MobileIron’s (MOBL) shareholders. MobileIron’s board approved the deal and believes “the transaction will maximize stockholder value.” The deal is expected to close in the fourth quarter. Shares closed at $7.05 on Monday.
MobileIron’s CEO Simon Biddiscombe said “Bringing together our solutions will enable organizations to easily secure users, devices, data and access in the Everywhere Enterprise and we’re confident that this transaction will enable us to deliver comprehensive security for the next generation workforce, provide enhanced opportunities for our team of employees, and better serve our customer base.” (See MOBL stock analysis on TipRanks).
Following the deal, Raymond James analyst Robert Majek maintained his Hold rating on the stock, saying that the “acquisition of MobileIron makes sense given the company’s high margin recurring revenue stream (retention rate 90%+, gross margins 80%), cross-sell ability with its enterprise customer base, and significant opportunity to reduce opex spend especially if merged with another enterprise software entity.”
Currently, the Street is sidelined on the stock. The Hold analyst consensus is based on 2 Holds, 1 Buy, and 1 Sell. The average price target of $6.08 implies downside potential of about 13.8%. Shares are up 45.1% year-to-date.
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