The latest tech takeovers have renewed speculation that Bridgewater Systems is a tempting target.
Tekelec, a U.S. rival to Ottawa-based Bridgewater in the mobile data space, announced two acquistions early Thursday. The Nasdaq-listed company picked off a company named Camiant for $130-million, and a smaller player called Blueslice for $38.5-million. Much like Bridgewater, Tekelec is expanding the range of services it offers to clients such as telecom companies.
Tekelec paid a price that equates to a multiple of four times sales for the companies it bought, according to a report Thursday from National Bank Financial analyst Kris Thompson.
"In our opinion, this acquisition could be a major catalyst to put Bridgewater in play as an acquisition candidate," said Mr. Thompson in a report. He pointed out that hedge fund Crescendo Partners, a major Bridgewater shareholder, can take a more activist stance at the company after the May 26th annual meeting.
With Bridgwater stock trading at $9, Mr. Thomson estimated that a takeover of the Ottawa company at the valuations paid by Tekelec translates into a $20-a-share price tag.
Bridgewater is backed by Terence Matthews, of Newbridge Networks and Mitel fame. The company's shares have doubled over the past year.
Editor's Note: An earlier version of this blog post incorrectly stated that Crescendo could solicit interest in the sale of Bridgewater after the May 26th meeting. This has been corrected.