Jefferies has kept its 'buy' rating and 160p target price for FTSE 250 software group Anite, calling Monday's acquisition of Finnish group Propism as 'strategic progress'.

The company has spent €31m on Propism, a vendor of channel emulation technologies that will be integrated into its Handset Testing division.

The broker said: "Anite is building on its market position as the leading vendor of LTE handset testing technologies, acquiring best-in-class technology providers in directly adjacent segments.

"The acquisition of Propsim is a compelling example, bringing high market share and an emphasis on R&D, a trait that Anite shares."

The stock is trading at 16.3 times calendar 2013 earnings, in line with its European software peers.

However, the broker said that the stock should have a premium rating as a result of "premium organic growth, a comprehensive global customer base and highly attractive exposure to secular 4G trends demand".

Markets welcomed the purchase on Monday, with shares up 4.1% at 146.6p before the close.

BC

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