Bloomberg - Stock-split, new acquisitions, NETP to be bought out?
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1/18/00 2:33:00 PM
Source: Bloomberg News
Minneapolis, Jan. 18 (Bloomberg) -- Net Perceptions Inc., whose software helps companies track people's Internet buying patterns, may split its shares because they've more than quadrupled since its April initial stock sale, analysts said.
Shares in companies that make Internet software have risen as investors expect online sales to surge. Companies such as BroadVision Inc., Commerce One Inc. and Vignette Corp. have announced stock splits since September.
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Analysts declined to say when they expect Net Perceptions might split its stock, which makes shares more attractive to smaller investors. A 2-for-1 stock split would halve the price of each share, while doubling the number of common shares outstanding. Net Perceptions, which has no direct rival in helping companies sell goods online and in stores, also may be acquired, analysts said.
'They're the only company that can do exactly what they do,' said Chase H&Q associate analyst Matt Davies, who has a 'buy' rating on its shares. ' They have some pretty valuable real estate.'
Minneapolis-based Net Perceptions, whose investors include Microsoft Corp. co-founder and billionaire Paul Allen, has a market value of $1.27 billion, with 22 million shares outstanding. It lost $9 million in the nine months ended Sept. 30 on $8.8 million in sales. Analysts expect a profit in 2001.
Net Perceptions shares rose 1 9/16 to 58 today on the Nasdaq Stock Market.
More Acquisitions
Net Perceptions President and Chief Executive Steven Snyder said it may make more acquisitions to sell a wider range of software. Yesterday, the company agreed to buy closely held KD1 Inc. of Austin, Texas, for $126.4 million in stock to help track sales that aren't made on the Web.
Mergers and acquisitions have 'been one of the core initiatives of Net Perceptions and we've looked at a number of companies,' Synder said on a conference call today. 'We will continue to explore M&A opportunities.'
Company spokesman Tony Carideo said he knows of 'no current plans' for a stock split, and declined to comment on whether Net Perceptions is in talks to be acquired.
Instead of buying well-established, publicly held rivals such as Macromedia Inc., Net Perceptions will probably buy closely held companies that make software for Web advertising, said John G. Kinnard & Co. analyst Keith Menzel, who rates the shares 'strong buy.' KD1, for instance, has 60 workers and about $4 million in 1999 sales.
Net Perceptions may continue to use its stock for acquisitions and had $49.7 million in cash as of Sept. 30, said Pamela Lund, an analyst with Miller, Johnson & Kuehn Inc. who rates the shares a 'buy.'
Total sales of software for electronic commerce is expected to rise more than 28-fold to $13 billion in 2003 from $444 million in 1998, Lund |
