Online Resources Eyes Takeover Bid
CHANTILLY, Va. – Shares in Online Resources Corp., one of the survivors of the 2006-2007 takeover binge among financial service provides, surged Friday after the company said it was evaluating unsolicited merger offers.
Company shares soared as much as 50% Friday, before closing up 33% at $6.07, with an unusually high 1.8 million shares changing hands.
The offers come as Online Resources has been struggling, reporting a third quarter loss of $711,000 amid flat revenue growth, and a three-quarter loss of $2.2 million.
“The Board is considering these alternatives against the long-term strategic growth plan that it recently approved in order to determine whether there is now an option that can deliver greater shareholder value,” the company said in a statement. “Under the strategic plan, the Company has enhanced its management team and is currently investing in technology, products and organizational structure to drive revenue growth and margin improvement.”
Possible suitors are believed to be Fiserv, Jack Henry & Associates and Western Union, among others.
The company said it hired Raymond James & Associates as its financial advisor and Kirkland & Ellis as its legal counsel to evaluate possible takeover offers.