I understood that from the IntelliHR announcement on 20th of March that Humanforce has a five-day matching right. Presumably that ends when trading starts on Monday so we may hear of an increased offer then - or that the matching right of Humanforce has expired.
I believe that Humanforce will increase their offer. IntelliHR is a growing SaaS business with very high customer retention. ARR is approximately $9million yet it is increasing by approx 25% pa even in these difficult economic conditions. Applying that increase for six years gives an ARR of $36 million. SaaS businesses are scaleable and can limit the growth of their expenses so in six years IntelliHR could be highly cash generative and profitable. Multiplying the ARR of $36 million in six years by a factor of 10 (that SaaS businesses often trade on) would value IntelliHR at $360 million (or about $1 per share).
Do you own research but I believe Humanforce and The Access Group have the funds and the medium term view to see the potential value in IntelliHR. Acquiring the company even at 30 cents could appear quite an attractive medium term opportunity.
IHR Price at posting:
21.0¢ Sentiment: Hold Disclosure: Held
