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December 06, 2010, 1:27 PM EST
By Douglas MacMillan and Joseph Galante
(Updates with an analyst’s comment in fourth paragraph.)
Dec. 6 (Bloomberg) -- Radware Ltd., the maker of technology that helps Internet networks run more efficiently, jumped as much as 23 percent after Israeli newspaper Calcalist reported Riverbed Technology Inc. may seek to acquire it.
Radware, based in Tel Aviv, gained $6.32, or 19 percent, to $39.08 at 1:05 p.m. New York time in Nasdaq Stock Market trading, after earlier rising to as high as $40.24. The shares had more than doubled this year before today.
The company’s technology would help a buyer cater to customers aiming to cope with rising reams of digital information, said Ashok Kumar, an analyst at Rodman & Renshaw LLC in New York. Companies including Hewlett-Packard Co. and Dell Inc. are using deals to step up their ability to sell products and services that help providers equip data centers.
“Radware does have very attractive intellectual property for players who are looking to expand their footprint in the data center market,” said Kumar, who rates Radware “outperform” and doesn’t own the shares. “Further consolidation in this space is inevitable.”
Joyce Allen Shulman, a Radware spokeswoman, and Jin Woo, a spokesman for San Francisco-based Riverbed, declined to comment.
HP, based in Palo Alto, California, is also in talks to buy Radware, according to Globes, another Israeli news service.
Gina Tyler, a spokeswoman for HP, declined to comment.
--With assistance from Aaron Ricadela in San Francisco. Editors: Tom Giles, Ville Heiskanen.
To contact the reporters on this story: Douglas MacMillan in San Francisco at dmacmillan3@bloomberg.net; Joseph Galante in San Francisco at jgalante3@bloomberg.net.
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net.
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(Updates with an analyst’s comment in fourth paragraph.)
Dec. 6 (Bloomberg) -- Radware Ltd., the maker of technology that helps Internet networks run more efficiently, jumped as much as 23 percent after Israeli newspaper Calcalist reported Riverbed Technology Inc. may seek to acquire it.
Radware, based in Tel Aviv, gained $6.32, or 19 percent, to $39.08 at 1:05 p.m. New York time in Nasdaq Stock Market trading, after earlier rising to as high as $40.24. The shares had more than doubled this year before today.
The company’s technology would help a buyer cater to customers aiming to cope with rising reams of digital information, said Ashok Kumar, an analyst at Rodman & Renshaw LLC in New York. Companies including Hewlett-Packard Co. and Dell Inc. are using deals to step up their ability to sell products and services that help providers equip data centers.
“Radware does have very attractive intellectual property for players who are looking to expand their footprint in the data center market,” said Kumar, who rates Radware “outperform” and doesn’t own the shares. “Further consolidation in this space is inevitable.”
Joyce Allen Shulman, a Radware spokeswoman, and Jin Woo, a spokesman for San Francisco-based Riverbed, declined to comment.
HP, based in Palo Alto, California, is also in talks to buy Radware, according to Globes, another Israeli news service.
Gina Tyler, a spokeswoman for HP, declined to comment.
--With assistance from Aaron Ricadela in San Francisco. Editors: Tom Giles, Ville Heiskanen.
To contact the reporters on this story: Douglas MacMillan in San Francisco at dmacmillan3@bloomberg.net; Joseph Galante in San Francisco at jgalante3@bloomberg.net.
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net.
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