General Discussion / Social Media, page-5642

G'day mate, yeah happy to go into a bit more detail.

To start with, it's obvious and well documented that ALC significantly overpaid for Silverlink. $55m upfront is ridiculous for a company of their size. It's coming up to two years now since the acquisition and we have seen no $20m -$40m full epr contract that they have alluded to many times in their presentations.

I appreciate that they have signed around $6m in renewal revenue however they have also had to pay out $5m so what roughly $1m profit?

in my opinion, ALC knew that last FY they were not going to hit the markets consensus revenue target. Because of this they went out and essentially bought silverlink for the revenue that they would contribute. without the silverlink contribution ALC would have posted less then $30m revenue for FY23 which would have been detrimental to their share price.

Happy to hear any other thoughts on this.

cheers