deal looks good 5I RESEARCH ANSWER:
The Bankcard deal looks good, and will add US$29M in revenue and EBITDA of US$11M. Compare this with QUIS's revenue of C$12.7M and EBITDA of C$2M in the 3Q. There will be synergies in the deal as well. The price is OK at about 5 to 6X sales. The shares in the deal are subject to lock-up. With $100M in cash as compensation, debt is going to increase fairly sharply. A public issue later this year would not surprise us. But we think the company can handle the debt and the acquisition, and as it approaches $500M market cap we think investor interest will stay high here