Tibco said Wednesday that its board is studying potential strategic and financial alternatives for the business software maker.
Its shares rose 9.7 percent percent to $23.09 in after-hours trading.
Tibco Software Inc. said three of its independent directors formed a special committee for the review process, which began on Aug. 16.
The disclosure comes amid published reports that the Palo Alto, California-based company has begun to reach out to potential acquirers.
Typically, when a company says it is exploring strategic alternatives, it means they are considering a possible sale or acquisition.
Tibco shares ended regular trading Wednesday down 16 cents at $21.04. The stock has dropped 6.4 percent this year.