November 20, 2007

A Buyout on Actuate?

I like top growth stock Actuate most for two reasons. First, it is seeing improved results. Q3 earnings rose 83% -- easily besting Wall Street estimates -- and CEO Peter Cittadini is buying shares.

Second, the company is a longtime Microsoft partner and Microsoft is the only major vendor of enterprise software not to have purchased BI expertise. Its Reporting Services software gets good reviews but that's mostly a BI add-on to SQL Server.

Microsoft could bolster SQL Server, and thereby its position as a provider of enterprise software, with a tuck-in acquisition of Actuate for less than $1 billion. Heck, I wouldn't be surprised if deal papers were shuffling around in Redmond right now.

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