SIQ 0.26% $7.77 smartgroup corporation ltd

Ann: Completion of purchase of Health-e Workforce Solutions, page-5

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  1. 1,701 Posts.
    lightbulb Created with Sketch. 43
    This acquisition is quite meaningful in terms of size. An additional 50,000 salary packages...
    The EPS accretive measure of +18% is very telling. This would put the circa 25cps to 29.8cps, without any removal of duplication of processes (there may be some, given the economies of scale in this business).

    Of course, this is still a company dependent on FBT regulations, which is a significant risk given the threats to government revenues. Luckily the acquisition multiple is not huge. Also lucky that the market seems to be completely forgetting about regulatory risk.
    Last edited by Klogg: 13/12/15
 
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