Document management company Pitney Bowes said Thursday it will buy MapInfo, a location intelligence company, for $408 million in cash.
Pitney Bowes' offer is worth $20.25 per MapInfo share, a 53.3% premium to its Wednesday closing price of $13.21 on the Nasdaq Stock Market.
MapInfo shares soared on the news, gaining $6.77, or 51.3%, to $19.98 in morning trading. Earlier in the session, the stock spiked as much as 52% to an all-time peak of $20.09, surpassing its prior 52-week high of $14.81, and nearing the bid price.
Stamford, Conn.-based Pitney Bowes anticipates the purchase -- which is expected to close in the second calendar quarter of 2007 -- to reduce its 2007 earnings by 4 cents per share.
MapInfo, based in Troy, N.Y., said more than 7,000 businesses use its services and reported $165 million in revenue in 2006. Pitney Bowes' 2006 sales totaled $5.73 billion.
"We are excited about the acquisition of MapInfo because it leverages our current expertise in location intelligence to deliver a broader range of advanced solutions for retail, ommunications, insurance, financial services and the public sector as well as strengthening our customer communication management offering," said Pitney Bowes Chief Executive Michael Critelli.
Pitney Bowes stock added 14 cents to $45.58 in morning trading on the New York Stock Exchange.