Yes diversification is definitely great but I feel unless your...

Yes diversification is definitely great but I feel unless your company is a large conglomerate that can afford run completely unrelated businesses independently then there is better value / synergy in smaller companies looking at bolt on acquisitions in fields not to dissimilar from what they are already doing or same as what they are doing but a bolt on that unlocks access to a new region or larger market share. That way they don't have to duplicate costs in company management and will likely benefit in cross sales.

So although RFT looks like a good small cap bolt on my felling is it could be hard to unlock additional value for a long time as there isn't much Synergy between RFT and CDA. I would take a close look at ASX listed KSS, what they are doing will sell to similar customers as the communication division of CDA and I would think there may even be a technology overlap that would benefit CDA.