Hummingbird to acquire three cos

TORONTO: According to Hummingbird Ltd. Chief Executive Fred Sorkin, the software maker was looking to acquire two or three small companies in the coming year and would probably buy them with cash.

"I'm looking for really two or three companies to acquire in the near future, during the year 2003. I think it will be some technology companies and some integration companies," Sorkin told Reuters in an interview.

"I think the majority will probably go for cash, " he said. Accordingly, the deal would be in range of $5 million to $15 million in cash, while a deal over $20 million would likely involve some equity.

Hummingbird's cash position, including short-term investments, stood at $119.7 million as of Dec. 31. This was unchanged from the end of the fourth quarter, even though it bought back 317,800 shares at a cost of $6.4 million during the quarter.

The chief executive said the firm was planning to buy back more of its shares. "The shares are undervalued no doubt," he said.

($1=$1.53 Canadian)

© Reuters