Akram's Razor • 14 Comments
Akram's Razor • 14 Comments
Apr. 7, 2015, 4:46 PM
- Following data warehousing software vendor Informatica's $5.3B deal to be taken private (follows deals for Tibco and Riverbed), Stifel thinks PC virtualization/thin client software vendor Citrix (NASDAQ:CTXS) could be next on the block. It even goes as far as to argue a $110/share buyout price (nearly 75% above current levels) is possible.
- Mizuho's Abhey Lamba thinks both Citrix and enterprise backup/restore software vendor CommVault (NASDAQ:CVLT) could be targeted. "Both stocks are currently trading around 3x EV/revenue and we would not be surprised to see activist shareholders become more involved if these companies continue having execution issues. Applying the above transaction multiples, CTXS could be valued at $75-100/share and CVLT could be valued at $55-60/share."
- MKM's Kevin Buttigieg also argues Citrix is a possible activist target. "CTXS’ margins have lagged peers through a variety of lenses ... The 2015 reorg goes beyond merely reducing headcount and fixed costs which it should — CTXS needs to change the way it goes to market in order to realize greater synergies across its various product lines."
- Citrix and CommVault both rose fractionally in regular trading. The Citrix M&A speculation comes amid ongoing execution shakeups and departures. Sudhakar Ramakrishna, SVP/GM of Citrix's Enterprise and Service Provider Technology division (a major product strategy role), recently departed, after which Citrix eliminated his position. The GM of Citrix's PC/app virtualization ops also recently left. Long-time sales chief Al Monserrat's departure was announced in January; EMEA sales chief Carlos Sartorius has replaced him.
- Meanwhile, Citrix has announced it's buying Grasshopper, a provider of cloud-based VoIP phone services for SMBs, for an undisclosed sum. Grasshopper, whose solution (like those of peers) requires no hardware installations, claims over 150K customers.
Mar. 14, 2013, 2:35 PMM&A speculation has led CommVault (CVLT +8%) to surge to new all-time highs. CommVault's above-market growth and strong positioning in the high-end storage backup/recovery software market could appeal to a larger enterprise IT firm, but the company sports a market cap of $3.9B and trades at a lofty 54x estimated FY14 (ends March '14) EPS. | Mar. 14, 2013, 2:35 PM
May 9, 2012, 5:01 PM
Though high-end enterprise storage software firm CommVault (CVLT) has been the subject of plenty of M&A speculation, CEO Robert Hammer says his company isn't for sale, nor is it looking to make acquisitions itself. CommVault, which has been taking share from Symantec and others, rallied yesterday after posting a strong FQ4 report.| May 9, 2012, 5:01 PM
Feb. 24, 2012, 12:24 PMCommVault (CVLT -4.8%) shares sink after partner Dell's (DELL +1.1%) purchase of a developer of software for backing up applications running on servers similar to what CVLT makes. Stifel Nicolaus says CVLT's tech is broader and thus isn't worried about the competition, but the acquisition dampens the likelihood of a long-rumored Dell takeover of CVLT. | Feb. 24, 2012, 12:24 PM
Feb. 24, 2012, 11:38 AMDell (DELL) has acquired AppAssure, a fast-growing (194% growth in 2011) developer of software for backing up applications running on servers. The acquisition puts Dell into more direct competition with Symantec (SYMC) and CommVault (CVLT), and comes 3 weeks after the company hired former CA head John Swainson to run its software business. (also) | Feb. 24, 2012, 11:38 AM
Nov. 28, 2011, 10:39 AM
CommVault (CVLT +7.9%) joins Quantum (QTM +7.1%) in taking off on speculation NetApp (NTAP +3.5%) might bid for the company. Though unlike Quantum, which sports a price/sales ratio of just 0.8, CommVault wouldn't come cheap: the storage software vendor, which has been taking share from Symantec (SYMC) in major enterprise accounts, has a trailing P/E of 51.| Nov. 28, 2011, 10:39 AM
Jun. 20, 2011, 3:54 PM
CommVault (CVLT +7.1%) has long been mentioned as a takeover target, and ThinkEquity now says the timing is right, since the software provider’s recent deal with NetApp (NTAP) could be an inflection point in CommVault’s growth and could "significantly" enhance takeout value.| Jun. 20, 2011, 3:54 PM