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Technology stocks were rising Wednesday, with shares of tech companies in the S&P 500 climbing about 0.4% in mid-day trade.
In company news, LogMein ( LOGM ) rallied to a fresh record high on Wednesday after the cloud-based services company agreed to $1.8 billion offer to merge with Citrix's ( CTXS ) GoTo business.
The merger will be structured as a reverse Morris Trust transaction, with Citrix spinning off its GoTo business into a separate company through a tax-free distribution to shareholders. The surviving entity will then combine with LogMein, with an expected close expected during the first three months of 2017.
As part of the deal, LogMein declared a special cash dividend of $0.50 per share, payable August 26 to shareholders of record on August 8.
Separately, LogMein last night also reported non-GAAP Q2 net income of $0.49 per share, up from $0.35 per share during the same quarter last year and topping the Capital IQ consensus by $0.03 per share. Net sales rose 28% over year-ago levels to $83.3 million, also exceeding analyst estimates expecting $81.83 million.
LOGM shares were up more than 20% at $83.75 apiece, earlier topping out at an all-time high of $86.40 a share. CTXS shares were down over 3% at $86.56 apiece, previously declining to a session low of $85.00 a share.
In other sector news,
(+) AAPL, (+6.5%) Q3 EPS of $1.42 tops expectations by $0.04 per share. Net sales fell 14.6% to $42.36 bln, also exceeding the $42.1 bln consensus. Sells 40.4 mln iPhones compared with 40.2 mln Street view.
(-) AKAM, (-17.2%) Reports Q2 net income of $0.64 per share following a 5.8% rise in revenue to $572.1 mln, matching estimates for a $0.64 per share profit on $574.82 mln in revenue.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
