RE:Worthington receives 4.8m new shares; others receive 4.2mThis is just further evidence as to how much STC overpaid for STS. Worthington made out like a bandit except for the fact that STC shares have headed south ever since the deal was closed.
Worthington was apparently a great CEO of STS as a private company and built it into a signficant player with major US clients. My guess is STC's BOD felt Wignall had lost his magic re. sound, value-driven acquisitions and a plummeting share price, so they asked for his resignation in favour of Worthington who not only built a great company, but robbed Wignall in getting a such a generous deal in the STC acquistion of STS that benefitted him and other co-owners of STS immensely.
As mentioned, Worthington has been buying small chunks of shares repeatedly, so it will be interesting to see what happens to STC. Perhaps a group led by Worthington will take STC private, or maybe a sale to either another player in the sector or a tech company that wants into the sector by taking over a company like STC instead of trying to build one from the ground up?
STC sure seems cheap right now, but I suspect a recession is coming and I don't know how much companies are willing to spend on new hardware and software as debt may be a problem for them both now and over the next year or so.....? Also, I assume STC's costs to purchase hardware components to build the equipment they sell to clients has gone up, so one would assume the price STC charges to clients for their hardware products has also increased...?