1/ SGI SGI announced the acquisition of Force on 5/6/24. This acquisition was 43 % EPS accretive (proforma FY 24). Initial reaction of the market (5/6/24) : + 9 % for SGI share price (ASX all ord : + 0.3 %) Performance of SGI share since this acquisition : + 61 % (ASX all ord : + 2.8 %).
2/ Vysarn Vysarn announced the acquisition of WWS on 30/8/24. This acquisition was 20 % EPS accretive (proforma FY 24). Initial reaction of the market (30/8/24) : + 7.7 % for VYS share price (ASX all ord : + 0.6 %) Performance of VYS share since this acquisition : + 17.9 % (ASX all ord : - 0.6 %).
My point is just to say that, in both cases, the valuation does not immediately discount these acquisitions. In both cases, there was an opportunity to buy these stocks just after these acquisitions.
