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Major US firms seemingly have a good run of acquiring smaller innovative Canadian companies at bargain prices: http://www.techvibes.com/blog/2011-tech-acquisiti
by phaet0n 15y ago
Major US firms seemingly have a good run of acquiring smaller innovative Canadian companies at bargain prices: http://www.techvibes.com/blog/2011-tech-acquisition-tracker-18-and-counting-2011-07-08 http://www.techvibes.com/blog/2011-tech-acquisition-tracker-...
I think it may point to the difficulty of getting financing beyond a certain threshold.
- mathattack 15y agoSeems like it sold at ~ 20x EBITDA and a little over 2x sales. Expensive by the first metric; cheap by the second. Revenue is ~180k per employee - low for an established company. The weak EBITDA makes or tough buy for a PE firm, who might not be able to make interest payments on the debt required for a purchase. This is much less of an issue for IBM who would pay in cash. I see IBM making half the employees redundant an then pushing the product through their existing sales network. Not a bad deal for them, though it might make Algo a tougher place to work.