Making 44% in a day is an amazing return.
Such returns are usually associated with tiny speculative stocks, or cryptocurrencies. But this morning it was Aconex Ltd [ASX:ACX], a billion-dollar construction software company, that jumped up 44%.
Source: Google Finance
What happened to Aconex share price?
This morning Aconex said that they’ll sell the business to Oracle Corporation [NYSE:ORCL], a global cloud software service provider.
Oracle made a bid of $7.8 per share for the business, 47% higher than Aconex’s previous trading price. As reported by The Australian:
‘The deal will see Aconex’s (ACX) platform become part of the Oracle construction and engineering cloud, which offers planning, scheduling project delivery solutions.
‘According to Oracle, the combination of Aconex with its existing offer will create the most comprehensive cloud-based project management solution targeting the global $14 trillion construction industry.’
What now for Aconex?
It’s a little sad that Aconex is being sold off. I’m sure shareholders are happy with the offer price. But now they’ll never know what could have been.
Aconex was expanding into the lucrative Chinese construction market. The company was growing sales rapidly. Had they been able to control costs, the business might have sold for a lot more than $7.8 per share.
Junior Analyst, Money Morning
PS: What to find more stocks with huge growth potential. Check out these three small-cap stocks trading on the ASX. They could rapidly grow over the next few months.