the relevance is that this is a comparable transaction. It’s one...

the relevance is that this is a comparable transaction. It’s one possible way to value a business, by reviewing transactions for comparable companies.

edgeconnex is a much larger business in the same market. You can have a look at the EBITDA multiple it sold for and apply it to DXN to imply a value.

DXN is EBITDA negative atm so it’s not a perfect comparison, but gives you some data points to start working with.

mature companies trade at low multiples, high growth (like DXN) trade at high multiples

TLDR: Bullish