With all due respect to TPG I doubt they have the required skills/experience/contacts/reputation/international wherewithal to do justice with the Covata technology.
Selling this type of specialised system software solution is an area in which TPG have little or no experience in Australia let alone Internationally, sure they have done a great job in aggressively taking market share in the telco/internet space but Covata is a whole new ball game.
I would doubt TPG would give a fig about their investment in Covata, they took a punt so far it has failed, who knows what the future holds.
TPG have bigger fish to fry and significantly more problems of their own, the share price has tanked from $12 bucks to $6 with concerns over the impact of the NBN.
TPG have revenue of 2.4 Billion and make a profit of around 400 Million, Covata as an asset of TPG would be less than a rounding error or half the size of a Bee's todger.
Yes I agree Covata could easily be acquired/taken over for chump change but it would need to be made by an internationally reputable IT company with deep technical knowledge in the data security arena, who, would basically buy the IP because it would be cheaper and faster than writing it themselves. Is this likely to happen, if it was, I think it would have happened already, CISCO could have been a potential suitor?
CVT Price at posting:
4.6¢ Sentiment: Hold Disclosure: Held
