Solera Holdings, Inc. (NYSE : SLH)
Solera Holdings, Inc. (SLH), a risk and asset management software and services company today announced that they will enter into a definitive merger agreement to be acquired by Vista Equity Partners for $55.85 per share. The transaction is said to be valued at roughly 6.5 billion, including the existing net debt of Solera.
Solera Holdings, Inc. CEO’s Comments
“This transaction delivers immediate compelling value to our stockholders and represents a pivotal milestone for Solera in partnering with Vista,” Solera CEO Tony Aquila said in a statement. “It not only recognizes our innovative company and talented employees, but also provides us with the optimal flexibility to proliferate our world-class solutions and services for our customers.” The Street
SLH Technical Analysis
SLH gapped up in price yesterday to $54.15 up from Friday’s close of $49.45 which is a 10% increase in price on the merger news. Taking a look at the daily chart we can see the last time the stock traded above this price level was back on March 5th when it traded at $55.61. Taking a little further look back we can see the stock reached highs of $56.73 back on Feb 26. Since those highs the stock has been on a downward trend until it reached its 52 week lows of $36.14 on Aug 3. However, the stock has rebounded of the lows with extreme peaks and valleys. For example, the stock reached highs of $48 on August 10 only to reach lows of $40.38 on August 12 equivalent to a 16% drop in price over a 2 day span. After those lows, the stock popped all the way to $51.63 on August 19 a 28% increase in price only to drop all the way to $39.32 only five days later on August 24 a 24% drop in price. As we can see the stock has been extremely volatile in its recent trading history. Due to the extreme peaks and valleys of the stock lately I may look at this as a time to make a swing trade and try and short this current peak of the stock. For trading purposes my entry point short would be $54 looking for a run to $50 or below in the next week. My stop loss would be $55.50 fearing if we go above that the stock may make another run.
Company Profile
Solera Holdings, Inc. provides risk and asset management software and services to the automotive and property marketplace. The company offers estimating and workflow software that manages the overall claims process, estimates the cost to repair a damaged vehicle, and calculates the pre-collision fair market value of a vehicle; and salvage, salvage disposition, and recycling software that connects buyers and sellers through an electronic auction network. It also provides vehicle insurance re-underwriting solutions that provide property and casualty insurers with driver violation reporting services; and electronic titling services, which provide a driver information services platform that allows automotive dealerships to streamline operations and enhance the customer purchasing experience by assembling and processing the data necessary to electronically register a vehicle, produce a title, and issue a permanent or temporary tag real-time at the point of sale. In addition, the company offers Web-based subrogation solutions that lower processing costs, automate processes for efficiency, provide objectivity, and increase accuracy for subrogation claims and out-of-network claims; and vehicle validation services, which offer private car buyers, car dealers, finance houses, and the insurance industry with access to information on all registered vehicles, as well as business intelligence and consulting services. Solera Holdings, Inc. provides its solutions under the LYNX Services, GTS Services, and GLAXIS brand names. It serves automobile insurance companies; collision repair facilities; independent assessors and automobile dealers; service, maintenance and repair facilities; and automotive recyclers, salvage, and dealerships. The company operates in the United States, the United Kingdom, rest of the Europe, and internationally. Solera Holdings, Inc. was founded in 1966 and is headquartered in Westlake, Texas. Yahoo Finance