Why Interactive Intelligence, Infoblox, and Veeva Systems Jumped Today

By Markets Fool.com


Image source: Interactive Intelligence.

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Wednesday brought a downbeat end to August for the stock market, with both the S&P 500 and the Dow Jones Industrials falling just enough to finish the month lower than where they had started it. The energy sector was the primary culprit, and a big drop in the price of crude oil to below $45 per barrel worried investors that another downswing for energy prices more broadly could once again threaten a major portion of the U.S. economy. Yet even though the oil and gas industry didn't do well today, some other companies fared much better. Among the best stocks in the market on Wednesday were Interactive Intelligence (NASDAQ: ININ), Infoblox (NYSE: BLOX), and Veeva Systems (NYSE: VEEV).

Interactive Intelligence gets a buyout bid

Interactive Intelligence climbed 6% after competing customer-engagement platform specialist Genesys announced this morning that it would acquire the company. Genesys will pay $1.4 billion, or $60.50 per share, in cash in exchange for Interactive Intelligence stock, and although the day's gains were relatively strong, the offering price represents a premium of more than a third to where Interactive Intelligence traded before it started considering strategic alternatives like a sale of the business. The deal will boost both companies' scale, and Interactive Intelligence CEO Don Brown said that he is confident that the Genesys deal "provides Interactive Intelligence shareholders with immediate and significant value, and will deliver meaningful benefits to our customers, partners, and employees." The merger should close by the end of the year, giving Genesys the future gains if Interactive Intelligence's business remains successful.

Infoblox: putting itself up for sale?

Infoblox gained 7% in the wake of reports that the company is looking to put itself up for sale. According to reports, the networking software technology company has had several potential buyers express their interest in a strategic combination, and Infoblox could well end up going private if one of the private equity companies interested in making a purchase emerges the winner. Infoblox has had to deal with contentious investors throughout the year, having hired investment banking support to help defend itself against activists at Starboard Value. If an auction for the business goes forward, it could both satisfy those activist investors and be a good way for Infoblox to move ahead without having to worry about justifying its results quarter in and quarter out.

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Veeva celebrates an earnings win

Finally, Veeva Systems gained 9%. The provider of cloud-computing services with a healthcare specialization announced that revenue climbed more than a third from year-ago levels, leading to a 15% rise in earnings per share. In addition, sales of the company's Veeva Vault suite of data tracking and management programs were particularly strong, and Veeva's outlook for the rest of the year was also impressive. Analysts were pleased with the report, with some boosting their price targets in light of the better than expected performance. As long as Veeva can keep making positive progress, jumps like today's could be just the beginning of a more powerful move higher for the stock.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Veeva Systems. The Motley Fool recommends Interactive Intelligence. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.