@Tommyhaib raised a very good point that's not gotten too much attention so far which is the additions to the bench this deal is offering, particularly in the eCommerce/IT segment which prior was underweight on a relative basis. Once the details drop tomorrow (or later today) I hope folks will focus on what this actually adds in proven capabilities with substantial operating track records, in addition to the other items that will surely be scrutinized. This represents not only a substantial reduction in key man risk the firm had been facing (i.e. risk of anything happening to DT and how this impacts the company and your invested dollars), all but assuring that the firm can move forward successfully in a worst case scenario, but also adds personnel that are well-known and respected quantities in the institutional space (as Tommy mentioned) that have experience successfully scaling tech businesses. That intangible value is difficult to quantity in terms of dollar value but certainly represents some goodwill that will come into play going forward. Until the terms are published it may be wiser to cool excessive speculations as the AFR article wasn't as accurately written as one would hope which already led to some misinterpretation. We are clearly not in a market trough/bear market situation which has its own way of impacting deal terms, particularly as it relates to (prospective) high margin tech ventures, and it makes sense to remember that exogenous factors do impact the level of leeway DT & Co have negotiating when scrutinizing the terms. Also bear in mind that you'll post deal own 2 of the 3 players in this industry -- and may I add the two who actually offer a much wider product range than the other firm and offer a hands down more complete solution. That's ought to be worth something.
There's always a ton of speculation about value and valuations, especially with regards to acquisitions etc., and I don' anticipate tomorrow will be any different. Regardless of whether one believes the acquisition is undervalued/priced right/overpriced, the true value won't be actually known until much further down the line due to the nature of the 'asset' that DW8 is acquiring as opposed to buying a dividend producing asset or the like. That makes things more difficult to assess but also represents substantial opportunities for investors. Sometimes it makes sense to take a step back and think about things before drawing a premature conclusion.
DW8 Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
(20min delay)