Assessment of AcquisitionThe $51.5M deal brings revenue to $160M. Catapult adds about $52M revenue, 35% recurring. At 1X sales, the price seems quite reasonable. It will be accretive in 2022. It adds management and another MSFT cloud partner. It adds scale and geographic expansion. We think it is a pretty solid move for the company. QUIS is selling $40M of new shares to pay for it, at a 13-cent discount. This may pressure shares a bit, but overall we like the deal.
So said the team at 5iResearch. GLTA