Why Advent Software Shares Dropped

Updated

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of accounting software maker Advent Software dropped today by as much as 12% after the company said it will not pursue a sale.

So what: Reports that Advent was potentially considering a sale sent shares higher last week on hopes that the company could be acquired by a private equity firm. At the time, there was reportedly a large gap between what Advent was seeking and what prospective buyers were bidding. Today, Advent said it would continue on as an independent company.


Now what: CEO Pete Hess said the company went through a "thorough process" to evaluate the various strategic alternatives with the assistance of Qatalyst Partners, which served as Advent's financial advisor. Wilson Sonsini Goodrich & Rosati also served as legal counsel throughout the process. Hess said the board believes that shareholder value can be maximized under Advent's current strategic plan.

Interested in more info on Advent Software? Add it to your watchlist by clicking here.

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The article Why Advent Software Shares Dropped originally appeared on Fool.com.

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