- On March 1, Craneware plc reported financial results for the six months ended December 2020 in line with consensus, which remained unchanged following the report.
- The real news came on June 7 when it announced its intent to acquire Sentry Data Systems, a SaaS-based pharmacy services company for $400M by early calendar 3Q21.
- This should almost double Craneware’s annualized EBITDA to an estimated $50M.
- While the deal is attractive, we think there is little upside to the stock in the near term given the pending issuance of additional shares and debt, and its need to complete and integrate the acquisition.
- If the company executes the acquisition well, the shares could once again potentially trade at a premium multiple.
For further details see:
Craneware: Acquisition Of Sentry Data Systems A Game Changer