Alteva Gets $8 Per Share Offer From Private Equity Firm Jupiter
Alteva (NYSE: ALTV) got a non-binding proposal Tuesday to be acquired for $8 per share in cash from private equity manager Jupiter Investment Co.
Alteva, with a market capitalization of about $39.4 million, offers cloud computing services; its shares are down more than 12 percent year to date.
Jupiter, which also boosted its stake in Alteva to 6.2 percent Tuesday, from 5.7 percent, said the offer represents a 51 percent premium to Alteva's August 25 closing price of $5.29.
Jupiter would combine Alteva with its affiliate Princeton Hosted Solutions company, which provides cloud-based computing and data center services. Princeton is a unit of Brooklands Heritage LLC private investment firm.
Alteva on Monday announced that it expected to grow through acquisitions and launched a $3 million share buyback plan.
Also Monday, Alteva said it completed a restructuring and named Brian J. Kelley its new chief executive. Kelley had served as interim CEO for several months.
Alteva closed Tuesday at $6.81, up 28.8 percent.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.