Norkom shares jump 14.7pc as discussions on possible €100m offer confirmed
SHARES in Dublin-based Norkom jumped yesterday after the financial-security software company confirmed discussions with a number of parties that could lead to a €100m-plus offer for the firm.
Norkom shares, which are listed on the low-cost Enterprise Securities Market for smaller companies, closed up 14.7 pc at €1.25 in Dublin last night, valuing the company at €112m.
It was the first time the shares traded since news on Friday evening that talks were taking place. The shares had surged 14.7pc on Friday before news of the talks was confirmed.
"This announcement is very positive for Norkom and will be welcomed by the market," said Davy Stockbrokers analyst Simon McGrotty.
Mr McGrotty said companies such as Israel-based NICE Systems, US-based payments company ACI Worldwide or US credit-score company Fair Isaac might be prepared to pay up to three times the value of Norkom's sales, which could push the share price up to 80pc higher than Friday's levels.
Shares in investment firm TVC, which has a 27pc stake in Norkom, jumped 14pc to 57c.
Norkom chief executive Paul Kerley owns almost five million shares in the company, representing over 5.6pc of its issued share capital. He acquired 52,000 shares in the firm earlier this month at 95c each.
Norkom was founded in 1998 and makes software which is used by financial institutions to improve their compliance and strengthen defences against fraud. It issued a profit warning two months ago.