GREY:XEBEQ - Post by User
Comment by
tamaracktopon Apr 20, 2021 12:26pm
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Post# 33029648
RE:Acquisitions
RE:Acquisitions As a partial answer to your question about whether Xebec's acquisitions are accretive or dilutive, here is an excerpt from TD's December 31st report, regarding the acquisition of HyGear.
Transaction Size and Multiples: Based on HyGear’s 2019 revenue of ~$17.7 million (€11.4 million) and EBITDA of ~$5.3 million (€3.4 million), multiples paid for HyGear are 8.8x revenue and 29.3x EBITDA. On a forward-year basis, Xebec management is guiding to “double-digit annual revenue growth” while “maintaining strong EBITDAS margins”. Based on our estimates before the transaction, Xebec was trading at a 2021E EV/EBITDAS multiple of 66.3x when the transaction was announced and, as a result, we view the transaction as accretive.