A major move in data analytics is on hand, as Sumo Logic (NASDAQ:SUMO) is drawing increasing interest from private equity firms. Indeed, Sumo Logic closed up over 28% in Monday’s trading as a result. Several private equity firms—Thoma Bravo, Francisco Partners, and Vista Equity Partners—all approached the company about a potential acquisition.
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It’s unclear if Sumo is even interested in a sale. There’s been little word from CEO Ramin Sayar on the subject. This isn’t the first such move Thoma Bravo has made lately; Thoma’s been on what some call a “buying spree.” It bought Magnet Forensics back on Friday for C$1.8 billion in cash. Thoma Bravo also picked up SailPoint, Anaplan, and Coupa Software.
Sumo Logic may have made itself an excellent target for such a move. The stock is down 40% just in the last year, and also appointed a board member—John Harkey—as part of an agreement with Scalar Gauge Fund. Sumo also landed both Visionary and Challenger ratings by recent Gartner Magic Quadrant studies. Its impressive third-quarter performance likely didn’t hurt matters either.
Overall, consensus figures call Sumo Logic stock a Moderate Buy. Further, with an average price target of $13.33, it also offers investors 34.99% upside potential.
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