Alliance Data Systems Buys Conversant for $2.3 B, Ulta Soars

Mukesh Buch
12 Sep, 2014
New York City

Alliance Data Systems agreed to acquire Conversant for $2.3 billion. Darden Restaurants net swung to a loss $19.3 million. Ulta Salon profit surged 35% on 22% increase in sales. Rewalk Robotics surged on first day of trading. Value Line net climbed 42%.

[R]11:45 AM New York – Alliance Data Systems agreed to acquire Conversant for $2.3 billion. Darden Restaurants net swung to a loss $19.3 million. Ulta Salon profit surged 35% on 22% increase in sales. Rewalk Robotics surged on first day of trading. Value Line net climbed 42%.[/R]

Tollbooth Index slipped 0.6% or 56.06 to 9,441.68.

Earnings Review

Alliance Data Systems Corporation ((ADS)) jumped 2.4% or $6.03 to $258.90 after the marketing company agreed to acquire Conversant Inc, personalized digital marketing company in a cash-and-stock deal for about $2.3 billion.

The transaction is expected to close by the end of this year.

Share of Conversant Inc soared 30.5% to $34.84.

Darden Restaurants, Inc. ((DRI)) slipped 1.7% or 83 cents to $47.46 after the restaurant operator said net sales in the first-quarter ending on August 24 jumped 5% to $1.60 billion from a year ago period.

Net in the quarter swung to a loss $19.3 million or 14 cents a diluted share compared to profit of $42.2 million or 32 cents from a same quarter last year.

Ulta Salon, Cosmetics & Fragrance, Inc. ((ULTA)) surged 18.6% or $18.18 to $115.66 after the beauty retailer reported net sales in the second-quarter ending in June soared 22% to $734.2 million from a year ago period. Comparable store sales in the quarter jumped 10%.

Net income in the quarter surged 35% to $60.8 million or 94 cents a diluted share compared to $44.9 million or 70 cents from a same quarter last year.

Rewalk Robotics Ltd climbed 79% or $9.50 to $21.48 after the Israel-based medical devices maker today priced of its initial public offering of 3 million shares at a price of $12 per share and intends to use the net proceeds from the offering for general corporate purposes.

Value Line, Inc ((VALU)) jumped 2.6% or 37 cents to $14.72 after the financial information publisher said total revenue in the first-quarter ending in July rose 1.3% to $9.07 million from a year ago period.

Net income in the quarter climbed 41.7% to $2.04 million or 21 cents a diluted share compared to $1.44 million or 15 cents from a same quarter last year.