For Engage, its is all about creating the 'network effect' ... so I really like the additional integrations & also AdCel's 'creme de la creme' (to paraphrase the announcement) clients. So ticks the box for growth of the network both from an inventory & buyer point of view. Integration growth also adds to the stickiness of the network due to the time / energy taken.
A mild annoyance is that in previous releases, M&A was promised to be earnings accretive. I took that to be buying companies that have earnings. AdCel is described as being close to break-even; hence relying on synergies of the deal & the revenue multiplier effect to be earnings positive. But i can live with it.
I am also pleased that a SPP will be offered at the same terms as the raise - 16c & up to $2m.
The Ukrainian development facility is an interesting aspect of this deal - could lead to savings in future R&D costs too.
End game is they are now forecasting $30m in sales on an annualised basis & the network has grown. So I'll take the short-term pain. But one thing I know about SPP is that the share price trades down to the offer price. Also, might be a few staggers on the insto side.
EN1 Price at posting:
16.8¢ Sentiment: Hold Disclosure: Held
