BlackBerry Takeover: Who Will Be Targeted Next?

Jive and Fortinet

A couple other names garnering takeover talk are Jive Software Inc (NASDAQ:JIVE) and Fortinet Inc (NASDAQ:FTNT). Both companies were on Robert W. Baird’s list of 2013 M&A candidates in the tech sector, and to this point, neither have been part of any material transactions this year. Jive, the small-cap social business software provider, has received support from hedge funds Legg Mason Capital and JAT Capital, and billionaires D.E. Shaw and Ken Griffin also hold small positions.

While Jive Software hasn’t issued a press release admitting it is actively seeking a sale like BlackBerry, the company was in talks with SAP AG (ADR) (NYSE:SAP) in May before the enterprise giant ultimately took a pass. It’s reasonable to think that Shaw, Griffin and the rest of Jive’s larger investors are hoping for a deal to be made with another large-cap software player.

Fortinet investors, similarly, have had a very good time over the past few months, with shares of the network security provider up nearly 22% since July. Cisco Systems, Inc. (NASDAQ:CSCO)’s purchase of Sourcefire, Inc. (NASDAQ:FIRE) earlier this year renewed optimism that a bidding company would pay a lofty multiple in an acquisition. Shaw and Griffin also have exposure here, while Lee Ainslie and Steven Cohen were buying Fortinet shares in bulk during the second quarter. Ainslie upped his stake by 400% in his last 13F filing, while Cohen’s SAC Capital increased its position by a whopping 4,000%. SAC subsidiary Sigma Capital also holds some Fortinet shares, so we’ll be watching this situation closely. Stay updated for BlackBerry takeover news.

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