BroadSoft Shares Popped: What You Need to Know
What: Shares of BroadSoft (NAS: BSFT) got a clear signal today, rising as much as 11.4% intraday in a steady climb at moderate trading volumes.
Sowhat: This morning, the company announced the acquisition of Web conferencing expert iLinc Communications for just $2.4 million. While small, this deal will bolster BroadSoft's Internet-based voice services with a natural plug-in complement.
Nowwhat: Neither Polycom (NAS: PLCM) nor Cisco Systems (NAS: CSCO) needs to adjust its rearview mirror just yet, but this recent IPO is a very credible competitor to Sonus Networks (NAS: SONS) . The stock rose to 500% gains at one point before falling nearly 40% under the one-two punch of a weak economy and the end of the underwriters' lock-up period. At the current price, BroadSoft looks intriguing, and the iLinc addition could provide a long-term catalyst. If nothing else, BroadSoft is starting to look like an attractive buyout candidate for an all-rounder such as Cisco.
At the time this article was published
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