Small Cap Generalist • 24 Comments
Stephen Simpson, CFA
Nov. 3, 2015, 11:31 AM
- Constant Contact (NASDAQ:CTCT) is off 0.9%, but from the new price level it established yesterday up 22% after a $1.1B buyout bid from Endurance International Group (EIGI +3.2%). CTCT is at $31.53, down from $31.83, against EIGI's $32/share deal.
- Roth Capital's Richard Baldry sees "little likelihood of a competing bid," and accordingly has downgraded CTCT to Neutral, and reduced his target price to the deal price of $32/share from a previous $38.
- The offer is a "fair control premium, even though it is a valuation well discounted to CTCT’s broader SaaS peer group average of 4.6x," Baldry says.
- "We expect deal to close as-announced ... We believe CTCT’s focus on the SMB space make it unsuitable as an acquisition target for most larger SaaS players, as they tend to focus on the Enterprise space, in our opinion."
- He does think the deal could make other value-oriented names in the space more attractive, holding buy ratings on LivePerson (LPSN +2.3%), Interactive Intelligence (ININ -3.8%) and Tangoe (TNGO +2.3%).
May 8, 2015, 4:35 PM
- Tangoe (NASDAQ:TNGO) sold off today after slightly missing Q1 revenue estimates (while posting in-line EPS) and offering mixed guidance.
- The company has also announced it's buying IBM's Emptoris Rivermine telecom expense management (TEM) software business for an undisclosed sum. Tangoe declares Emptoris has a "global blue chip customer base," and complements its Matrix suite of cloud telecom asset/expense management apps. The deal is expected to close at month's end.
- Q2 guidance is for revenue of $56.5M-$57.5M and EPS of $0.18-$0.19 vs. a consensus of $58.4M and $0.19. Full-year guidance is for revenue of $245M-$250M and EPS of $0.73-$0.78 vs. a consensus of $239.7M and $0.79. Emptoris (naturally isn't factored into estimates) is expected to boost Q2 and full-year revenue by $1M and $10M, and hurt EPS by $0.01 and $0.04.
- Tangoe blames the Q1 sales miss on "quarter-to-quarter variability of non-recurring revenue," while insisting it's "the less strategic component of our business."
- Q1 results, PR
Jul. 9, 2013, 5:09 PM
Jive Software (JIVE), Millennial Media (MM), Tangoe (TNGO), Qlik (QLIK), and Sourcefire (FIRE) are possible acquisition targets as IT giants continue eying software plays, thinks Bernstein's Toni Sacconaghi (ed: Millennial is an ad services firm, and Sourcefire sells both security hardware and software). With PC and enterprise hardware (I, II) demand slumping, hardware vendors have plenty of incentive to grow their software exposure. Sacconaghi estimates software has made up over 60% of acquisitions for IT hardware firms since '02, services 23%, and hardware/other 14%.| Jul. 9, 2013, 5:09 PM | 1 Comment
Feb. 21, 2012, 4:44 PM
Tangoe (TNGO), which shot higher last week after reporting earnings, announces it's acquiring ttMobiles, a U.K.-based provider of management software for mobile devices and services. Tangoe expects the deal, which increases its European footprint, to boost its 2012 revenue by $4.5M and EPS by a penny. Shares +1.5% AH.| Feb. 21, 2012, 4:44 PM
Jan. 10, 2012, 7:01 PM
Tangoe (TNGO), a provider of web-based software for managing a company's communications assets and services, says it has acquired Anomalous Networks, a developer of software for managing mobile devices and telecom expenses. Tangoe says it doesn't see the deal having a major impact on its 2012 profits.| Jan. 10, 2012, 7:01 PM
Dec. 3, 2011, 1:24 PM
More on SAP/SuccessFactors: IDC predicted earlier this week the cloud business software space could see a wave of M&A activity, and SAP's big purchase will likely stoke investor hopes for additional deals occurring. Some other cloud software names that could be on the move on Monday: KNXA, TLEO, CSOD, TNGO, N, LPSN, CTCT, SREV.| Dec. 3, 2011, 1:24 PM