Blancco Technology Group: Now Fully Armed
Edison | Apr 25, 2016 06:51AM ET
The major contract win for Xcaliber shows the value and potential of its mobile diagnostics solution and Blancco's (LON:BLTGB) (formerly Regenersis) move to bring Xcaliber fully within a broader security and diagnostics offering makes sense. We have raised our earnings forecasts accordingly and continue to believe the shares are attractively valued.
Acquisition and contract progress
Blancco has announced the acquisition of, and a significant new contract win for, Xcaliber. Blancco already held 49% of the venture but has purchased the remainder for a consideration of $5.5m (£3.8m), $4.7m (£3.3m) of which is deferred and contingent upon certain revenue targets being met. We expected Blancco to acquire Xcaliber when it moved from early-stage loss making to profitable on a sustainable basis, but the contract win appears to have triggered Blancco to take control. The contract is multi-year for the roll-out of Xcaliber’s mobile phone diagnostics software across the 5,000+ North American retail base of a major mobile operator and is an extension of an existing 200 store trial. This news follows the announcements of the aftermarket services business disposal completion on 4 April, then the start of the £50m tender offer process on 6 April, which is based on a 215p to 250p range with a close on 4 May.
To read the entire report Please click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.