(News Bulletin 247) – AlphaValue confirms its ‘sell’ rating on EdenRed shares, with a six-month price target of 50.6 euros, revealing a potential decline of nearly 14% compared to the current price.
The analyst reports that EdenRed has announced the acquisition of Reward Gateway for €1.3 billion, with a deal expected to close ‘in the coming days’.
A major player in the United Kingdom and Australia, EdenRed is presented as ‘a leading platform in employee engagement’, with some 4,000 customers and 8 million users. The structure should generate respective sales and EBITDA of 95 and 45 M£ in 2023, estimates the analysis office.
The deal values Reward Gateway at a 2023E EV/EBITDA multiple of 20x (post run rate synergies), and is expected to be EPS accretive from 2024.
According to AlphaValue, the agreement should generate annual synergies >10 ME within two years and more than 50 ME of potential operating revenues within the next five years.
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