Corporate Executive Board (NYSE: EXBD) jumps after announcing acquisition

Orlando, FL 7/3/12 (StreetBeat) -- Corporate Executive Board (NYSE:EXBD) is rallying after announcing that it had agreed to buy HR analytics company SHL for $660M. Corporate Executive, which also reaffirmed its FY12 guidance for its existing business, said that the acquisition should be accretive to its 2013 EPS. SHL, which develops cloud-based talent measurement and management solutions, had revenues of $209.8M last year, Corporate Executive reported. In a note to investors earlier this morning, research firm William Blair said that the acquisition is positive for Corporate Executive.

The firm expects the deal to increase the company's EPS by 35c-40c each year. Furthermore, the acquisition will make Corporate Executive the largest provider of data, analytics, and assessments to HR departments, potentially giving it a scale advantage, said William Blair. Moreover, SHL's profit margins are expanding, and its business is performing well, reported William Blair, which thinks that Corporate Executive stock could reach $53-$54. The firm maintains an Outperform rating on the shares, which rallied $5.27, or 12.66%, to $46.91.

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