Ann: Casa Systems and NetComm Recommended Transaction, page-51

I don't think it has been shopped around at all. I suspect when word got out in the market that Netcomm was up for sale, Casa submitted an offer with "no shopping around"  terms and locked out any marketing to other investors. We haven't tested the true appetite of the market yet. I'm expecting a lot more drama to unfold over the next few months as the offer is simply too low. 

Ultimately the offer is circa 6x EBITDA/EV which is ridiculously low valuation for a tech company even on a standalone basis. Casa will also generate synergies from this transaction. EBITDA will no doubt increase substantially through cross selling of products, joint R&D facilities etc. As a result the FME multiple would be substantially lower than the 6x. 

Finally, having had a brief look at Casa they are trading at circa 8x multiple presently. They can increase their bid price by up to 33% and the offer will still be value accretive, without accounting for synergies.  

From a Directors perspective, I can see why they are recommending the offer. If a board gets an offer for a company at a 50% premium to the shareprice, they are effectively obligated to recommend to shareholders. 

Watch this space!