to say that “without acquisitions WTC will not grow” is bullshit. Anyone who has read up about Wisetech knows that acquisitions slow them down.
For instance, the Blume and Envase acquisitions has not resulted in any growth yet. Instead, it has cost WTC in its margins.
These acquisitions typically take 2-6 years to bear fruit and when they do, they generate great returns.
e2open is a big acquisition. It has more workforce than WTC. If you look at the cost structure, E2open has about 26% of its cost in R&D while WTC has 50+% in R&D. E2open will have to move its R&D cost from 26% to 50% and that can be achieved by getting rid of the other costs. The synergies in the next 3 years will be immense.
While these synergies play out, WTC would have gone from 1B revenue to 1.5B revenue in one year. GLTAH
WTC Price at posting:
$105.52 Sentiment: None Disclosure: Held
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