Tyler Technologies (TYL) has agreed to acquire privately-held cloud-based software provider VendEngine in an all-cash deal valued at $84 million. Tyler provides integrated information management solutions and services for the public sector.
Following the announcement, shares of the company fell 1.4% to close at $395.29 on June 3.
The deal is likely to close in the third quarter of 2021, subject to customary closing conditions.
VendEngine’s cloud-based platform will help Tyler to expand offerings in its corrections suite. The combined entity will be in a better position to cater to the needs of local and state government agencies, and incarcerated individuals and their families.
Furthermore, the deal will enable Tyler to offer better solutions for jails and correctional facilities to sustain proper safety measures in their daily duties.
Tyler’s Courts & Justice Division President Rusty Smith said, “We are excited about the significant opportunities ahead as we leverage our scale and resources to drive innovation and bring an expanded set of offerings to clients, incarcerated individuals, and their families. We are thrilled to welcome the VendEngine team to the Tyler family.” (See Tyler Technologies stock analysis on TipRanks)
On May 19, Needham analyst Scott Berg maintained a Buy rating and a price target of $480 (21.4% upside potential).
Berg said, “We continue to believe Tyler Technologies is well positioned to capture a growing share of public sector software market.”
The analyst further added, “We believe their product strategy including migrating applications to a public Cloud friendly environment is well-timed given the dynamics around adoption in a post COVID macro.”
Consensus among analysts is a Strong Buy based on 4 Buys versus 1 Hold. The average analyst price target stands at $495.00 and implies upside potential of 25.2% to current levels. Shares have gained 6.4% over the past year.
TipRanks data shows that financial blogger opinions are 100% Bullish on Tyler, compared to a sector average of 70%.
Related News :
Splunk Posts Wider-than-Feared Quarterly Loss, Revenues Beat Estimates
PVH Corp Posts Stronger-than-Expected Quarterly Results
Advance Auto Parts Delivers Strong Q1 Results as Profit Soars