Citigroup: J2 Global Could Be Worth $61 Per Share If It Acquires Carbonite

Carbonite Inc (NASDAQ: CARB) disclosed on Wednesday that it has received an unsolicited $15 per share buyout offer from J2 Global Inc (NASDAQ: JCOM), valuing the firm at $404 million.

Walter Pritchard of Citigroup commented in a note that a potential acquisition of Carbonite represents “the best publicly available balance between return on invested capital and strategy.”

The analyst adds that acquisitions is one of the multiple opportunities available for J2 Global to create shareholder value. The other opportunities include the potential for continued monetization improvements and the ability to succeed with additional BCS products.

Pritchard notes that J2 Global's $15 per share offer represents the highest value it could pay that would make the deal accretive in fiscal 2015.

Shares of J2 Global are Neutral rated with a $56 price target, but the analyst does note that shares could be worth $61 if it is successful in acquiring Carbonite and enough synergies are created.