Digicore Holdings Ltd. shares rose to a six-year high after U.S. software maker Novatel Wireless Inc. made a 1.09 billion rand ($89 million) approach for the South African technology company.
Novatel offered 4.4 rand per share for Digicore, a maker of vehicle tracking systems, the San Diego, California-based company said in a statement on Thursday. Digicore shares gained as much as 18 percent to 4.25 rand, the highest price since February 2009, and traded at 4.1 rand as of 9:44 a.m. in Johannesburg.
The acquisition “would provide immediate top-line contribution and meaningful earnings contribution in 2016,” Novatel said. Digicore has appointed an independent board to evaluate the proposal, the Pretoria-based company said in a separate statement on Friday.