I am sure that they have a platform of sorts from which they offer their solutions and their managed services. The question is whether there is any value in that platform (i.e. IP) or whether DWX's value proposition has been based on the packaging of the solutions and services provided on a easily replicable platform. I suspect the latter, or we would have heard more about this IP. This, IMO, is not a bad or negative thing in itself, but it points to the importance of the technical knowledge of acquired staff and perhaps in the commercial relationships that the founders have with their clients.
The value to TSN is between 0.4-0.6 cents per share on the basis of a 10-15 PE ratio. Hence fair value once the acquisition is bedded down is around 1.5c (if base value is taken to be approx 1c). So how do we grow it from here to facilitate shareholder value growth and also to provide a better TSI acquisition currency?
I look forward to comms from the CEO, sooner rather than later, as to where TSN will be targeting cyber security related revenue growth from. In terms of products/services and in terms of geographies and in terms of channels to market. It is pretty central to growth.
Well done to all concerned with what appears to be a substantially positive step at bargain basement prices. Let's hope the market is given the information to support a price trajectory.
TSN Price at posting:
1.1¢ Sentiment: Hold Disclosure: Held
