Deutsche Bank Positive on IBM's Acquisition of Emptoris for Tangoe
Deutsche Bank has published a research report on Tangoe (NASDAQ: TNGO) after IBM (NYSE: IBM) announced this morning that it would be acquiring Emptoris, a move that Deutsche Bank sees as positive for Tangoe.
In the report, Deutsche Bank writes, "IBM (Buy, USD188.72) this morning announced that it is acquiring Emptoris, a provider of on-demand supply chain software. We note that Rivermine, a smaller telecom expense management (TEM) competitor of Tangoe, was recently acquired by Emptoris. We believe the Emptoris acquisition is focused on IBM's efforts to beef up its software business. IBM's relationship with Tangoe is on the consulting (Global Services) side of the business and we therefore don't see the Rivermine segment as directly competitive or disruptive to the IBM partner relationship."
Deutsche Bank maintains its Buy rating and $18 price target on Tangoe, which is currently trading up $0.40 from yesterday's $14.53 closing price.
