Absolute Jumps on Samsung Device-Tracking Deal: Toronto Mover
Stock Chart for Absolute Software Corp (ABT)
Absolute jumped 16 percent to C$6.39 at the close in Toronto, the most since November 2008. The company has a market value of C$265 million ($261 million).
Samsung, the world’s largest smartphone maker, plans to incorporate Absolute’s technology into its line of Galaxy devices later this year, the Vancouver-based company said today. Absolute software helps users trace their smartphones and tablets remotely wherever they are.
“This deal in our view makes Absolute a much more credible competitor in the mobile device management space,” said Thanos Moschopoulos, an analyst at BMO Capital Markets who upgraded the stock to the equivalent of a buy on the news. “This also makes Absolute all the more attractive as a potential acquisition candidate.”
Absolute was founded in 1993 to help users track their laptops. As sales growth of those devices slows, the company is harnessing its future to booming sales of tablets and smartphones, a market led by Suwon, South Korea-based Samsung. Google Inc.’s Android platform, used by Samsung, accounted for 70 percent of all smartphones sold in the fourth quarter of 2012, according to IDC.
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