Acquisition Assessment Q: CloudMD to Acquire MindBeacon, one of North America's leading Clinically-Validated iCBT Solutions. What do you think of this deal and what would be a good entry price?
It is a fairly aggressive deal at $116M. But it adds scale, and the revenue run rate will be $185M. Valuation is OK, and the company will have $60M post-closing. Mindbeacon has a good reputation and good connections. We would not look at the stock drop as a negative sign: with a large deal using some stock this is fairly common. Still, the stock has been weak, and we think might see some tax loss selling. $1.30 would be an interesting buy level.
So said 5iResearch. GLTA