Portal Software Inc. (Nasdaq: PRSF) rose 24 percent, up 7 27/32 to 39 15/32 after Cisco Systems Inc. (Nasdaq: CSCO) formally announced on Wednesday its $39 million investment in the newly public software company.
The investment, about 4 percent stake, puts a price tag on Cisco's ongoing relationship with Portal that integrates Cisco Service Management technology with Portal's customer management and billing software called Infranet.
The news of Cisco's investment should not come as a surprise. Portal mentioned it in their filing with the Securities and Exchange Commission and confirmed it in an interview with ZDII last week. In the filing, Portal was to hold a private sale of 3 million shares to Cisco that was to take place concurrently with their initial public offering. Also, Portal sold 400,000 shares to Andersen Consulting in that placement.
Portal shares began trading Thursday, rising to 44 in its first day on the Nasdaq.
In related news, Cisco shares reported better-than-expected results late Tuesday.