RE:RE:News: RSI Int'l to sell RoomKeyPMS business for $4.6M (U.S.)This business is valuable because they can probably cut $400k in duplicate costs. And 75% of new revenue will flow to the bottom line with current revenues quite stable even in a very competitive environment. Customer acquisition costs are quite low as well. Some SaaS companies have 30-40% sales costs with low growth.
At 1x revenue they are getting a bargain here imo. Take out a competitor and every 1$ million of revenue is probably $750k of EBIT down to the bottom line.
They should have done a merger instead of straight up selling it. 5-10 years from now they will regret this. If they do not payout the proceeds it should trade at a sizable discount.