I've held out on SFI thus far because of the cap implications of...

I've held out on SFI thus far because of the cap implications of the Milestone shares.

But now that we know EagleView is interested I got in at 7.6c/share today.

EV is significantly undervaluing SFI. Between Clearlake's recent equity investment and EV already having exclusive rights to SFI's tech in the US, it seems evident that EV's plan is to take SFI global.

NEA has $48.8m ACV just in Australia. EV must be doing north of US$200m in the US just on their old product. The global market must be north of $1bn annually.

And here we have EV bidding $121m. For one of only 2 companies in the world that have the necessary technology.

Of course SFI as a standalone business would not be worth $121m today but between the two tensions I think EV needs SFI more than SFI investors need 8c/share today.

I'd guess that EV would need to raise the bid to something around 12c or more to get this deal over the line.

The downside risk is the deal falls over and I take a 33% haircut. But I'd be willing to hold in that case -- I've held NEA for 8 years -- the technology is solid and EV just validated its importance.