Actian is attempting to buy rival data management company Pervasive Software Inc. in a deal worth about $139.4 million in cash.
The privately held Redwood City, Calif., company's unsolicited offer of $8.50 per share represents a 30 percent premium over Pervasive's Friday closing price of $6.55. The news sent Pervasive shares soaring to an eight-year high in early trading.
Based on the Austin, Texas-based company's 16.4 million outstanding shares, the deal is worth $139.4 million. Actian valued the deal at $154 million, which takes into account dilution from stock options and restricted stock.
Actian Corp. CEO Steve Shine called Pervasive, which makes software for embedded data and data integration, an "an excellent strategic fit" for his company, adding that the combination of the two companies' assets will drive growth.
Shine said his company decided to make its proposal public after Pervasive repeatedly declined its request to take part in acquisition talks, adding he would still prefer to negotiate a mutually beneficial deal with the company, rather than launch a hostile takeover.
Pervasive officials did not immediately return an email seeking comment.
Shine said in his letter to Pervasive's board that his company would finance the deal with a combination of cash and debt and is in talks with potential lenders.
Shares of Pervasive Software Inc. jumped $1.55, or 24 percent, to $8.10 per share in morning trading, after reaching $8.24 earlier in the day.