Technology Sector Update for 05/31/2016: ELRC,SQI,AMSC

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MSFT -0.21%

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Technology stocks still were slightly lower this afternoon, with shares of tech companies in the S&P 500 slipping about 0.1%.

In company news, Electro Rent Corp ( ELRC ) surged to a 17-month high on Tuesday after the company agreed to a $323.4 million buyout offer from private equity firm Platinum Equity, which is offering $13.12 for each of the electronics testing and measurement company's shares, a 24.4% premium over Friday's closing price.

The transaction already has received unanimous approval by the Electro Rent board and is expected to close during the next 90 to 120 days, pending a positive vote by shareholders and other customary closing conditions, including regulatory approvals and a positive vote by Electro Rent shareholders in addition to other customary closing conditions.

Steven Markheim and Allen Sciarillo, who respectively were named CEO and Chief Financial Officer at the company recently, will retain their current positions under Platinum Equity ownership.

ELRC shares were up almost 24% at $13.04 each, earlier climbing to their best price since January 2015 at $13.13 a share.

In other sector news,

(+) SQI, (+32.6%) Accepts $509 mln buyout offer from Accel-KKR, with the mid-market technology investor paying $17.75 in cash for each SQI share, a nearly 34% premium over Friday's closing price.

(-) AMSC, (-6.7%) Sees fiscal Q1 adjusted net loss of no more than $0.90 per share compared with Street view looking for a $0.51 per share loss. Also projects $12 mln to $14 mln in revenue, lagging the $20.72 mln consensus.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Technology , Commodities
Referenced Symbols: AMSC

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