West Corp(NASDAQ:WSTC) announced it has entered into an agreement to acquire Reliance Holding, d/b/a SchoolMessenger, a leading provider of notification and mobile communication solutions for the K-12 education market. SchoolMessenger will be a part of West’s Unified Communications business segment. Closing of this transaction, which is subject to customary closing conditions, is expected to occur during the second quarter.
SchoolMessenger had revenue of approximately $27M in 2013. West expects this transaction to be slightly accretive in 2014 on an earnings per share basis, adjusted for deal-related amortization and expenses.
Analysts have a consensus price target of $27 on West Corp(NASDAQ:WSTC) which indicates a 9.5% upside. The consensus rating of the stock is a BUY with a score of 2.69. There are currently 4 Hold ratings and 9 Buy ratings on the stock.
A recent analyst action consisted of Zacks upgrading the stock from Underperform to Neutral with a price target of $24.50.
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