CommVault Surges to Record High on Takeover Speculation

CommVault Systems Inc. (CVLT), a provider of data-storage software, surged to a record high amid speculation that the company may be acquired.

The shares jumped 8.5 percent to $84.16 at 12:33 p.m. in New York, and earlier touched $86.89 for the highest intraday price since a public market debut in 2006. Through yesterday, the stock had advanced 11 percent this year, about the same increase as the Standard & Poor’s 400 Midcap Index.

A takeover “makes sense” for any company that wants to gain CommVault’s software, according to Joel Fishbein, an analyst at Lazard Capital Markets in New York. He recommends buying shares with a target price of $95, 24 percent higher than the average of analysts’ estimates compiled by Bloomberg.

“The investment community is catching up to the growth potential of the company,” Fishbein said in an interview today. “They have the best product in the market and it would make a lot of sense for somebody to want to have the asset.” CommVault provides data and information management software to corporate customers including Levi Strauss & Co., Adobe Systems Inc. (ADBE) and BT Group Plc. (BT/A) Formed in 1988 as a development group within Bell Labs, CommVault became an independent company eight years later. The software maker sold 12.8 million shares at $14.50 apiece in an initial public offering in September 2006.

Kevin Komiega, a spokesman for Oceanport, New Jersey-based CommVault, didn’t immediately respond to a request for comment.

To contact the reporter on this story: Sarah Frier in New York at sfrier1@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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