Well as positives I can certainly see the benefits of the deal. Getting into directional drilling should be a good move with deeper drilling and mining taking place more and more. 22% market growth rate!!! Sensors are at 17% growth as well. There are going to be a lot of synergies in HR, research, product, client base, locations, deliveries, implementations, software, IP. Sure they will not all happen in the first year.
Question is, what will Devico be worth to Imdex in a few years time?
Devico are making about double the EBITA margin. Would be good if IMD can gain more business at those margins.
The higher multiple for the acquisition could easily be more than worth it IMO.
IMD Price at posting:
$2.47 Sentiment: Hold Disclosure: Held
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