They didn't need to buy the consulting arm to get access to...

They didn't need to buy the consulting arm to get access to envirosuite as EVS would have fallen over backwards to sign them as a reseller anyway. They must have liked the business.

That doesn't mean though it's not a great deal for EVS, compare what they have here to other tech stocks where now they are cash backed and envirosuite is essentially free.

Dirty Harry makes some very sensible points though re any real transparency of current recurring envirosuite revenue seperate to consulting business. Personally I believe this is the only reason it didn't go straight to 15-20c on this deal as market is not clear what cash burn will be going fwd versus revenue. Ie will it plough through the cash reserves now its lost the consulting revenue?

Personally i think the risk reward profile here is pretty strong and punters who wait for a clearer set of go forwards revenue v growth v cash burn figures will be paying a premium on top of price cr currently available.

But having said that, that's still not a bad strategy as at the point it becomes cash flow positive with decebtvrecurring revenue there will still be plenty of growth left, only removed any risk of CR in future etc. I feel given cash position and sales pipeline On balance nows the time to top up, but each to their own strategy.