FTI Consulting shares spike following acquisition

Late Tuesday, FTI said it would pay about $88 million in cash for Seattle-based Attenex, which makes software that automates data processing and provides tools for analyzing massive amounts of electronically stored information. The software is used by corporations and their law firms to comply with regulatory requests and internal investigations.

Separately, FTI announced a license agreement with Endeca Technologies Inc., another information access software company. FTI will use Endeca software to create new applications for searching financial information and databases and other electronically stored data, to help clients assess information relevant to litigation, mergers and acquisitions, government investigations and other matters.

Robert W. Baird & Co. analyst Mark Bacurin said the Attenex purchase will round-out FTI's capabilities for providing electronic discovery, "providing in-house technology that touches every step of the eDiscovery process and strengthening the company's competitive position." It helps FTI solidify its position as an industry leader in this fast-growing field, he said.

Analyst Scott Schneeberger of Oppenheimer & Co. said the two deals "are seminal transactions" that he sees "as final steps in (FTI's) building a sizable & comprehensive e-discovery business for a potential spin-off," in the second half of the year.

Both analysts kept "Outperform" ratings on the stock.

FTI Consulting shares rose $5.25, or 9.5 percent, to $60.72 in midday trading. Shares, down 10 percent for the year, have traded between $35.40 and $72.14 in the last 52 weeks.