Nassarius Capital
Long/short equity

Callidus Software: Getting All Dressed Up For The Acquisition Ball

Will Callidus Software be the next prominent cloud-based vendor to get acquired? If so, the Board of Directors is not standing in the way. Recent moves to crush the firm's poison pill, reorganize the C-suite, and place emphasis on profit indicate a speeding up of the process. Our acquisition-based probability model estimates shares are currently undervalued by >30%, with a fair value target of $16.50.


Callidus Software (NASDAQ:CALD) is a leader of cloud-based Sales Performance Management (SPM) services. SPM is an evolving category in the cloud space that is filling a gap between CRM, HCM, ERP, ECM, etc. At the core is Incentive Compensation Management (ICM) which accounts for greater than 90% of Callidus's revenue. In mid-2011,...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details