(Alliance News) - Sopheon PLC's Monday update should provide a "Christmas present" to investors, said finnCap, as the firm revealed an acquisition and solid trading.
The enterprise software provider has bought the business and assets of ROI Blueprints LLC, a cloud-based solution focused on detailed enterprise planning and execution, for an initial USD1.5 million in cash and a contingent deferred earn-out of up to USD1.5 million in a mix of cash and shares.
"Integrating the ROIB solution with Sopheon's Accolade product will extend the value of Sopheon's offering and expand market reach. It will also further accelerate Sopheon's migration towards cloud and SaaS," the firm said.
On trading, Sopheon said it expects revenue and earnings before interest, tax, depreciation and amortisation for 2021 to be "comfortably in line with market expectations".
finnCap nudged up its forecasts to account for the acquisition and said that the deal, combined with strong momentum, leaves Sopheon's valuation looking too low.
"Today's news should provide some form of Christmas present to shareholders," said finnCap.
The broker reiterated its 1,200 pence price target and said it looks forward to January's year-end trading update and March's results. finnCap added: "Having shown willingness to deliver on M&A aspirations, we look forward to further utilisation of the balance sheet strength."
Shares in Sopheon closed down 1.6% at 920.00p in London on Monday, but remains 16% higher since 2021 began.
By Lucy Heming; lucyheming@alliancenews.com
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