I bought this morning on that news but cut 1/4 of them late arvo given the strong run. Fairly complex deal but at 1.55 I estimated it was on a pro forma cash flow multiple of around 7x. Then in 5 years they buy out the remaining earnings at 4.5x so a bit more accretion although by that point NGI will have to pay cash tax on the core business.
But you're right the investment case also rests on NGI stopping the bleeding on the existing business. To be fair most of the AUM fall has been from the MAS acquisition that cost almost nothing, it was basically a free punt on keeping as much of the AUM as they could. The core navigator business has been a fairly steady grower of AUM until the March carnage
NGI Price at posting:
$1.93 Sentiment: None Disclosure: Held
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