M&A moved to the fore this week with a couple of high value transactions and several smaller tuck-in deals. Ahead of its Investor Day this week, simulation software provider ANSYS (ANSS) agreed to acquire Livermore Software Technology Corporation (“LSTC”) for $775 million in cash and stock, representing an EV/Sales multiple of 12.4x based on the midpoint of expected contribution in 2020.
Read MoreDespite the short week post-Labor Day, there was much to absorb with a slew of companies reporting results, a number of notable acquisitions, and a couple of secondary offerings in the mix.
Read MoreWe are initiating coverage of QAD (QADA) with a $51.00 price target, representing a FY ’21 EV/Sales multiple of 2.5x. QAD is a vertically-focused application software provider in the midst of a transition to the cloud.
Read MoreWe hope those perusing this week’s review are doing so from the beach or simply taking some time to decompress during the Labor Day weekend. Heading into the unofficial end to summer, Pitney Bowes (PBI) sold its Software Solutions business to privately-held data management solutions provider Syncsort for $700 million in cash, representing a TTM EV/Sales multiple of 2.2x and an EV/EBITDA multiple north of 17x.
Read MoreJust when we thought the summer doldrums were upon us, VMware (VMW) made waves with the announcement of two public company take-outs. The first, an acquisition of long-time partner and fellow Dell Technologies (DELL) controlled company Pivotal Software (PVTL), came as no surprise given last week’s 13D/A by Dell Technologies disclosing merger discussions.
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