Michael Cristinziano added to the PFM boardI've been saying that PFM will eventually be taken out. The company announced an addition of a new board member that is an expert in M&A. The addition was Michael Cristinziano, Corporate VP of Strategic Development at Citrix Systems ($13B market cap company).
I read this morning a note that one of their analysts (Vahan Ajamian at Beacon Securities) put out:
Here are some highlights:
First, in our view, being able to attract a senior executive at such a large (US$13B market cap) company speaks volumes regarding how positively ProntoForms is viewed in the industry.
Second, it brings M&A back to the forefront of our thesis:
“Michael Cristinziano is responsible for Citrix's mergers and acquisitions strategy and execution, technology licensing and venture capital investments.”
- Recall that QHR recently announced that it was being acquired for 4.7x this year's sales (vote is today). While ProntoForms isn't EBITDA positive yet, we believe the company's plan is to grow and eventually sell the company, as we do not believe there is any reason mobile forms need to exist as a separate public entity over the longer-term. For reference, applying the aforementioned EV/2016E Sales multiple of 4.7x to our 2016 sales forecast gets a theoretical takeout price of $0.58.
Applying this multiple on our 2017E sales (and balance sheet expectations a year from now) results in a theoretical takeout price of $0.78.