Is that to buy revenue, or to grow revenue.The market will react...

Is that to buy revenue, or to grow revenue.

The market will react more favourably to:

1)
the latter (ie: to taking an existing revenue stream, extracting cost efficiencies and then migrating the acquired model to a wider operating environment),

than to:

2)
the former (ie: taking an existing revenue stream, lumping it together, not extracting the cost efficiencies, and using this revenue stream to boost core revenue performance).

Entrepeneurs the world over (some successful, some fallen) have done 2). A few intrepid pioneers, however, have done 1) and taken an otherwise small business to greater heights.

ATC, however, is still in its infancy, but hopefully the FNT opportunity will be used to build the core business, rather than to boost it artifically. This, I think is one of the concerns that the market currently has with the FNT deal - announced, but not synergised. Therefore, neither transparent, nor apparent to the markets. Either that, or pre-paid cards is a fast maturing business in Europe (and a potentially low yield, but granted, a mass volume business in China).

As for due diligence being carried out in regard to FNT, the problem here is that DD can toss up some quite nasty roughies which, if not squared away, can easily ruin a deal in the making.

The problem here is that with the deal announced, DD is now underway (rather than previously having been conducted), and the market is wary of what DD may show up (if anything) in due course.

ATC, therefore, is only half-way there at this stage. So, monthly revenue upgrades (etc) will not do the trick for them. What they need is to annoucne:
1)
a completed and successful DD regarding FNT;
2)
a Business Plan /strategy update regarding the FNT integration /future direction; and
3)
cashflow positive operating results based on their existing business model (and not supplemented or supported by FNT).