great link to reuters while I was there I noticed a related link came out in July
Canadian firms Bridgewater Systems Corp (BWC.TO), Sandvine Corp (SVC.TO) and Redknee Solutions Inc (RKN.TO) specialize in such niche offerings that are hard to duplicate, making the trio enticing takeover targets.
"Bridgewater,Sandvine and Redknee may be attractive acquisition candidates fornetwork equipment vendors interested in upgrading their capabilities andfor enterprise software vendors looking to extend their reach into themobile broadband vertical," analyst Ron Shuttleworth of M Partners said.
Bridgewater, which manages mobile data and congestion, could be on the radar of Alcatel-Lucent (ALUA.PA), IBM (IBM.N) and Ericsson (ERICb.ST), while Sandvine could be targeted by Nokia Siemens NSN.UL, Ericsson and Cisco (CSCO.O).
Asian companies like Huawei Technologies Co HWT.UL could also be among the potential bidders.
Canadianmobile software companies' stocks stand out as they are undervaluedcompared to their U.S. peers, with Bridgewater looking particularlyinexpensive, said Francois Tellier, who is with the Transaction AdvisoryServices at Ernst & Young. (Graphic: link.reuters.com/cex79m)
Analysts expect Sandvine and Redknee to get offers that are more than double their current share price.
Bridgewater,whose stock closed at C$9.00 Tuesday on the Toronto Stock Exchange,could command about C$15 to C$17 per share, they said.
"Foranyone looking to penetrate the CDMA market in the United States,Bridgewater is a nice addition to have," Northern Securities analystSameet Kanade said.
The ability ofthese firms to seamlessly shift operations between 3G, 4G, long-termevolution (LTE) or WiMax is another draw for network gearmakers.