Post by
retiredcf on Nov 14, 2021 1:14pm
Assessment of Acquisition
The $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
Comment by
MarkAble on Nov 14, 2021 4:33pm
Good points. Some short term pain for hopefully long term gain. Question is how much lower will the share price drift and for how long?