PROS Holdings Inc shares jumped 13% to $36.02 in midday trading on Wednesday after the provider of revenue management software to airlines and other industries is exploring strategic options that include a potential company sale, Reuters reported, citing people familiar with the matter.
The media outlet noted the potential suitors are private equity firms that have so far been unable to come up with an attractive offer because of the company's losses, and it is possible that negotiations conclude without an agreement.
PROS, founded in 1985, has posted annual losses since it started offering its software through cloud computing in 2015.
According to Reuters, the company is not projected by most Wall Street analysts to return to profitability for at least the next three years, as the pandemic weighed heavily on PROS' airline clients.
The company has experienced post-pandemic revenue growth, though, reporting subscription revenue of $57.3 million in the second quarter, a 14% year-over-year increase, with overall sales rising 11% to $75.8 million.
Shares of PROS Holdings have gained 45% year to date.
Contact Sean at sean@proactiveinvestors.com