Is it finally on? It's even more obvious now... Peer-1 is an obvious take-out target of Racskpace.
Consider the following published numbers for the most recent quarter-end (December 31st, 2011 quarter-end) for both companies:
PIX market cap today = $263 million
PIX most recent qtrly revenue = $34 million
PIX most recent qtrly EBITDA = $8.6 million
vs.
RAX market cap today = $7.5 billion
RAX most recent qtrly revenue = $283 million
RAX most recent qtrly EBITDA = $102 million
Conclusion:
It looks like Peer-1 is an easy take-out by Rackspace:
Peer-1 trades at 1.9 times revenue compared to Rackspace at 6.7 times revenue
Peer-1 trades at 6.1 times EBITDA compared to Rackspace at 18.4 times
or, to put it another way...
If Peer-1 were to trade at the same EBITDA multiple as Rackspace it would imply a price of $5.17 per share...
or better yet,
If Peer-1 were to trade at the same revenue multiple as Rackspace it would imply a price of $7.58 per share.