I had a long think about this one, but have decided to wait for...

I had a long think about this one, but have decided to wait for the financials before making a final decision.

On plus side:
1. Definite good FCF generation which was one of my major concerns
2. Acquisition sounds strategic, at a fair price, and there is a history of reasonable success with this model

Negatives:
1. Bottom end of revenue guidance- as yet unexplained
2. Execution risk
3. Dilution for minority holders
-As a rule, I generally prefer short and quick institutional raises as it is much easier and less complex administratively, despite the dilution involved
4. I do not like the plan of sticking to a progressive dividend policy, diluting shareholders by getting additional external funding, although I understand the rationale. This does not make logical sense to me and moreover increases the sharecount base on which dividends are applied!

I think overall, given the FCF conversion looks sustainably high, and the balance sheet is somewhat repaired at a net positive prior to this acquisition, I think it is probably the right move. What is the rightful valuation...will wait and see.