Ann: TSN to Acquire Profitable Cloud & Cloud Security Business, page-13

It does sound like a very promising and exciting acquisition.  One that further cements TSN's pivot away from being captive to a locked minority share in a privately held Indian investment. The growth rates that we have seen in DWX since acquisition, and the implied growth rates of the Cloudten proposed acquisition are at the least compelling, and perhaps even tantalizing.  Albeit from a small base.

However, I am not overly surprised at the lack of recognition by the market. The acquisition economics are untested and about half of the $9.5m funds claimed as available for the acquisition are as yet un-acquired (ie option conversion and nett cash generation from future operations). If there is a shortfall in either of these sources, a CR may be required, hence a further ST anchor on SP.  That, plus seasonal and macro factors may be the reason behind the muted reaction.

That said, if future nett cash-flow is delivered, and early visibility of that releases pricing concerns, such that oppies are likely to be converted, then not only is the acquisition readily funded at attractive EBIT multiples, put the ongoing oppie conversion will build a nice war-chest for Jeff to deploy just as cannily as the last couple (one pending).

Exciting times.  GLTA.