Shares of OCZ Technology Group (OCZ.O) rose almost 19 percent in early morning trade on Thursday, a day after the computer memory and storage hardware maker raised its full-year revenue outlook and said it will acquire the UK design team of PLX Technology Inc (PLXT.O).
The company, which makes solid state hard drives (SSD) for computers, raised its full-year revenue outlook to $320-$350 million from $310-$345 million.
OCZ Technology also said it will acquire the UK design team of PLX Technology and licensing of PLX's intellectual property.
With this acquisition, OCZ hopes to bolster its R&D efforts and reduce the time-to-market for its SSD products, brokerage Needham & Co. said in a note to clients and raised its price target on the company's stock to $14 from $13.
This acquisition is also expected to reduce the licensing fees paid to third parties for IP and thus lower development costs on a go-forward basis, Needham analyst Richard Kugele wrote.
Shares of the San Jose, California-based company, after rising as much as $5.9, were trading at $5.73 on Nasdaq.