By all counts EVS is cheap and good value with due diligence all...

By all counts EVS is cheap and good value with due diligence all done by Macquarie Group (major shareholder with 8%^and up to 14% in EVS) , Market Cap/Sales at just under 4x at present price, with bulk in recurring revenue.

Good vibrations! Macquarie backs Envirosuite
Sarah Thompson, Anthony Macdonald and Tim Boyd
Jan 15, 2020 – 9.31pm

It's the ASX-listed small cap set to acquire a homegrown environmental noise and vibration monitoring company.
And at the same time, the $121 million Envirosuite is causing some noise and vibration in the market itself.

That's because Macquarie Group will emerge as a major shareholder in environmental data management software company Envirosuite, if its acquisition of EMS Bruel and Kjaer Holdings is completed.

As this column first reported on Wednesday morning, Envirosuite will acquire EMS for $70 million in cash, plus a consideration of 80 million Envirosuite shares and 95 million Envirosuite options.

The company went cap in hand in front of investors on Wednesday in a bid to raise the cash component of the deal via a placement underwritten by Bell Potter and priced at 20¢ a share.

The silver donut will come out the other side with an 8 per cent stake in Envirosuite once the dust settles on the transaction, which is subject to shareholder approval.

Macquarie's involvement may cause funds which might have overlooked the $121 million minnow to pay it some closer attention.
Macquarie's stake could increase to 14 per cent if it exercises its options, according to a slide deck spruiking the deal that was sent to fund managers.

The acquisition is a chunky play for Envirosuite, which generated $7.1 million in operating revenue in the 2019 financial year.
The combined Envirosuite-EMS business will be targeting $100 million in revenues within three years and a target EBITDA margin range between 15 and 20 per cent.

Envirosuite's main game is its real-time, predictive and diagnostic environmental management software which can help manage things like air quality, odour, dust and water. It operates in six countries and has around 100 clients.

Meanwhile, acquisition target EMS operates in 40 countries, and has developed a range of software solutions that it sells primarily to airports.

It has been operating for the past 30 years and its airport noise and vibration monitoring systems are used in 200 airports around the world – about 34 per cent market share.

It generated $47.5 million in revenues in the 2019 calendar year, and $43.7 million the year prior.
The acquisition was expected to complete before the end of February and was subject to shareholder approval.