SoftwareOne
Note: This is a daily stock update and the information stands true as of 13/12/24, 09:00 CET.
Company Update:
Our analyst is extremely convinced that SoftwareOne is a great buying opportunity. Valuation is depressed and absolutely disconnected to the underlying value of the company. We have no reason to disagree with him and following the very sharp drop in share price, we would start building a stake in the name.
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Company Update:
SoftwareOne confirmed that it is in advanced negotiations for a takeover of Crayon which should be settled in cash and shares (no further details disclosed).
The deal would make sense from a strategic standpoint as Crayon is the 5th largest reseller of Microsoft licenses globally. However rayon is trading at a noticeable premium to SWON and the deal would be substantially EPS dilutive. Crayon is trading at EV/Sales of 1.7x vs. SWON of 1.2x and Crayon at EV/EBITDA of 9.4x vs. 5.1x for Software One.
Expert Opinion:Our analyst is extremely convinced that SoftwareOne is a great buying opportunity. Valuation is depressed and absolutely disconnected to the underlying value of the company. We have no reason to disagree with him and following the very sharp drop in share price, we would start building a stake in the name.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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