Brutal eh mate
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Suppose the TASK guys are assuming their 60 cent shares will be worth more when they allowed to quit them
Could this be a way to get more qualified IT staff? The chairman said they were difficult to get, plus expensive in current market. Maybe easier to get through acquisitions
I am comfortable with this. The slide with revenue breakdown with McD's dominating highlights the sense in this transaction. It actually makes PLX strong in Australia and the challenge is to translate this into the USA. Looked closely at McD's statement and this gives me some confidence. As mentioned above gaining devs and customers makes the transaction a good move. Would love to know the forecast revenue for TASK and making assumption I would assume a modest 10% growth backing up their reason for selling. Can PLX gain one of the major supermarkets in Australia with this...
They won't be gaining many additional developers. TASK has 62 employees on LinkedIn. Only half that will be in Engineering and they have their own product to maintain, so I don't imagine there is much latent capacity to exploit. I assume they plan on integrating the two systems, which is going to take time and resources. Are the technologies that Plexure and Task are built on similar, and can resources by used across both? With Task having existed since 2000, they could be bringing a lot of legacy software to the party which will require dedicated resource to maintain. Feels to me like the board had cash in the bank that was burning a hole in their pocket and they got pretty desperate finding a way to invest it and grow the business...hopefully the upsell of Plexure software to the Task customer base can be exploited like they hope and it will be the best use of that cash!
So a company trading at 3.3 times sales buys a company for 8.6 times sales
Or is that the other way around
I believe it's a good move, the alternative for Plexure is best summed up in the following classic clip...
https://www.youtube.com/watch?v=rxZXptGpXng