Aladdin Knowledge (ALDN) opts out of Nasdaq

Filed under: Deals, Private equity

About a year ago, the security software operator, Aladdin Knowledge Systems Ltd. (NASDAQ: ALDN), was trading at about $25 per share. But with the plunge in Nasdaq and the slowing economy, the stock fell to a low of $5.85.

While the stock has come back a bit, it wasn't enough. So, this week, Aladdin decided to go private. The private equity sponsor, Vector Capital, is no stranger to such tech small-cap deals. The firm has a good sense of value for these things.

The buyout comes to about $11.50 per share or $160 million.

For the most part, Aladdin has a solid technology platform, with top clients. According to its latest quarterly report, the company posted revenues of $31.7 million, up 22% over the past year. Net income was $2.9 million, or $0.20 per share. Aladdin has also made a variety of acquisitions, such as for SafeWord and Eutronsec.

While the buyout market remains fairly dormant, there are still some deals getting done - especially for companies that are growing and have attractive valuations.

In today's trading, Aladdin's shares are up 14.58% to $11.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Aladdin Knowledge (ALDN) opts out of Nasdaq originally appeared on BloggingStocks on Mon, 12 Jan 2009 11:30:00 EST. Please see our terms for use of feeds.

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