Category: Business

Rocket Companies Acquires Redfin in $1.75 Billion All-Stock Deal

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Rocket Companies has announced a $1.75 billion all-stock acquisition of real estate brokerage Redfin.
– Redfin’s stock surged over 76%, while Rocket’s shares dropped by 10% following the announcement.
– The merger aims to streamline the home-buying process by integrating mortgage lending, brokerage, and real estate listings into one ecosystem.

Rocket Companies, a leading mortgage lender, has announced plans to acquire digital real estate brokerage Redfin in an all-stock transaction valued at $1.75 billion. The move seeks to integrate home search, brokerage services, mortgage lending, and title services under one platform, creating a more seamless and cost-efficient home-buying experience for consumers.

The acquisition is positioned as a strategic effort to modernize and consolidate the fragmented home-buying process. Rocket CEO Varun Krishna emphasized the inefficiencies in the current system, where home search, brokerage, mortgage, and title services exist in separate ecosystems. By combining Rocket’s mortgage and financing capabilities with Redfin’s online brokerage and home search platform, the companies aim to streamline the process and reduce transaction costs, which currently total around 10% of a home’s price.

Redfin, founded in 2004, operates a technology-driven real estate platform with over one million for-sale and rental listings and employs more than 2,200 agents. Rocket Companies, best known for its Rocket Mortgage brand, sees the acquisition as a natural fit to leverage artificial intelligence and automation to accelerate the homebuying process.

Following the announcement, Redfin shares skyrocketed by over 76%, reflecting investor enthusiasm for the deal’s potential to reshape the real estate industry. Meanwhile, Rocket’s stock fell by 10%, as investors weighed the financial implications of the transaction. The deal values Redfin at $12.50 per share, a 115% premium over its last closing price before the announcement.

Under the terms of the agreement, Redfin shareholders will receive approximately 0.8 shares of Rocket stock for each share of Redfin they own. Once the deal is finalized, current Rocket shareholders will own about 95% of the combined company, with Redfin shareholders controlling the remaining 5%. Rocket shareholders will also receive a special dividend of $0.80 per share.

The companies project that the merger will generate $200 million in cost synergies by 2027, including $140 million in operational efficiencies and an additional $60 million from enhanced collaboration between Redfin’s agents and Rocket’s financing platform. By aligning these services, the combined company aims to close home transactions faster and provide a more seamless customer experience.

Redfin CEO Glenn Kelman will continue to lead the business post-merger and will report directly to Rocket CEO Varun Krishna. The deal has been approved by both companies’ boards and is expected to close in the second or third quarter of 2025, pending regulatory approval and customary closing conditions.

This acquisition comes at a time of volatility in the housing market, with high mortgage rates and tight housing supply impacting affordability. Redfin’s stock, once trading near $96 per share at its pandemic peak in 2021, has struggled in the higher-rate environment. Rocket Companies, which went public in 2020, has similarly faced headwinds as mortgage demand has declined.

By integrating home search and mortgage lending, Rocket and Redfin could provide consumers with a more efficient home-buying experience. However, questions remain about execution risks and how regulators will view the increased consolidation of real estate services.

The ODP Corporation (ODP) – First Look at the Fourth Quarter

Posted on by slightbourne@noblecapitalmarkets.com


Thursday, February 27, 2025

Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. It offers merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture through its chain of office supply stores under the Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell brand names. The company also provides graphic design, printing, reproduction, mailing, shipping, and other services through design, print, and ship centers. It has operations throughout North America, Europe, Asia, and Central America. The company also sells its products and services through direct mail catalogs, contract sales force, Internet sites, and retail stores, through a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 31, 2008, Office Depot operated 1,267 North American retail division office supply stores and 162 international division retail stores, as well as participated under licensing and merchandise arrangements in 98 stores. The company was founded in 1986 and is based in Boca Raton, Florida.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Challenging Conditions. Continuing challenging macroeconomic and business conditions impacted ODP in Q4. ODP Business Solutions faced economic factors that caused enterprise spending constraints in the quarter, while Office Depot had more cautious consumer spending (along with 47 fewer stores). However, fiscal year figures were in-line with management guidance, and management is executing on initiatives to improve traction on both fronts.

4Q Results. Sales for the fourth quarter were $1.62 billion compared to $1.80 billion last year but were above our expectations at $1.55 billion and consensus at $1.61 billion. Net loss totaled $3 million, or $0.10/sh, compared to a loss of $37 million, or $0.96/sh, in the prior year. Adjusted EPS was $0.66 versus $1.13 last year. We were at $0.40 and $0.68, respectively. Adjusted EBITDA totaled $58 million, down from $83 million last year, and we were at $49 million.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.

Noble Capital Markets 2025 Virtual Conference

Posted on by cpatches

Noble Capital Markets’ Emerging Growth Virtual Equity Conference – June 4-5, 2025

Set to be an immersive experience, bringing together investors, industry leaders, and experts from middle market public companies across all sectors. Featuring:

Corporate presentations with Fireside-style Q&A session proctored by Noble’s analysts and bankers

Scheduled 1×1 meetings with qualified investors

More than 50 presenting companies, representing a wide array of sectors.

Why Present?

Noble’s investor base extends beyond traditional institutions to include family offices, money managers, and high-net-worth individuals who actively engage in smaller cap, open market transactions.

Noble’s investors crave the undervalued investment idea.

And not just investors that attend the live event. Channelchek will host replays of the corporate presentations and Q&A sessions right here, for all investors to view, free of charge, for the rest of the year.

Participation in conferences, both in-person and virtually, has proven to help in boosting awareness and liquidity. And Noble’s service offerings extend well beyond the conference circuit; our events are an extension of the year-round investor access we provide.

***Investor / Attendee registration will open in the spring***

Ready to Register to Present? Click the link below:

Register to Present – 2025 Virtual Equity Conference

Have questions about registering to present?

Email: Noble’s Conference Team

Learn more about Noble’s Investor Events throughout the year:

Noble Capital Markets Investor Events

Conduent (CNDT) – Improved Financials; Operational Execution Comes into Focus

Posted on by slightbourne@noblecapitalmarkets.com


Thursday, February 13, 2025

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q4 results in line. The company reported Q4 revenue of $800 million, largely in line with our estimate of $808 million. Adj. EBITDA in the quarter was $32 million, better than our estimate of $27 million. Notably, adj. revenue (ex-divestitures) improved sequentially, as the company continued to sign new business, which resulted in new business annual contract value in Q4 exceeding Q3.

Commercial segment momentum. Although Commercial segment adj. revenue was down 3.7% in Q4, management noted that the gap is narrowing between lost and expiring business and new business signings. Importantly, the segment, which is the largest by revenue, is expected to swing towards positive revenue growth near the end of 2025.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Kelly Services (KELYA) – Another $50 Million Share Repurchase Authorized

Posted on by slightbourne@noblecapitalmarkets.com


Monday, December 09, 2024

Kelly (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 350,000 people around the world and connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. Visit kellyservices.com and let us help with what’s next for you.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New Authorization. Kelly’s Board of Directors approved a new share repurchase program, authorizing the Company to purchase up to $50 million of its Class A common stock. The authorization expires on December 2, 2026. Shares under the authorization may be purchased from time to time in the open market, in privately negotiated transactions, or by other means.

Size. The $50 million authorization represents approximately 10% of Kelly’s current Class A market capitalization. We believe any potential share repurchases will be balanced against continued paydown of debt, additional M&A opportunities, and re-investment in the business to drive organic growth.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Honeywell’s Future in Question as Elliott Management Urges Corporate Breakup

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Elliott Management holds a major stake in Honeywell, urging a split into Aerospace and Automation segments.
– Elliott projects a 75% stock price boost within two years if Honeywell proceeds with the split.
– Reflecting a broader trend, Elliott argues for simplification to enhance focus and unlock value.

Activist investor Elliott Management has acquired a $5 billion stake in Honeywell International and is calling for the industrial conglomerate to split into two separate companies. Elliott’s proposal would see Honeywell divide along its two main business lines: Aerospace, which supplies critical technology to military and commercial clients, and Automation, a major supplier of sensors and control systems for industrial applications. Elliott’s managing partner, Jesse Cohn, and partner Marc Steinberg believe that a breakup would unlock significant shareholder value, projecting a 75% increase in Honeywell’s stock price within two years if their recommendations are followed.

In a letter addressed to Honeywell’s board, Cohn and Steinberg argue that the company’s current conglomerate structure has become a drag on its growth. They point to underperformance since 2019, attributing it to an unwieldy corporate structure and ineffective investor communication. Elliott, however, did not direct criticism at Honeywell’s CEO, Vimal Kapur, who took the reins in 2023 and has pursued an aggressive M&A strategy to enhance Honeywell’s portfolio. Nevertheless, Elliott contends that Honeywell would achieve better performance by focusing on core areas, which could be achieved more effectively through a separation.

Honeywell’s Aerospace division, which Elliott calls the company’s “crown jewel,” has been a consistent source of revenue, yet has received only 10% of the M&A investment allocated by Honeywell in the past 20 years. Elliott suggests that by reallocating resources and focusing exclusively on high-performing units, both Aerospace and Automation could realize their full potential independently. Additionally, Elliott argues that Honeywell’s back-office operations—such as legal, IT, and HR—are largely divided between the two units, making a split more feasible than in typical conglomerates.

Honeywell responded to Elliott’s recommendations by stating its openness to shareholder perspectives and welcoming further engagement with the activist investor. Despite this, Honeywell’s board was reportedly unaware of Elliott’s involvement prior to the public release of the letter. In keeping with its careful approach to activism, Elliott consulted extensively with industry experts and former employees to understand the company’s operational and strategic options, even enlisting investment bankers and consultants to aid in its analysis.

Elliott’s push for a breakup reflects a growing trend across industrial conglomerates, many of which have embraced separations in recent years. General Electric, for example, completed a long-awaited division into distinct units, which has driven significant stock gains in 2024. Similarly, 3M and Johnson Controls have shed divisions in favor of streamlined operations. Elliott argues that such moves allow companies to focus on core competencies, attract dedicated investor interest, and ultimately improve shareholder value—a transformation it believes Honeywell would benefit from.

Elliott’s recommendation proposes that the split would yield two businesses each valued at over $100 billion if taken public independently. They also suggest that Honeywell divest some additional non-core segments, such as its personal protective equipment and Advanced Materials units, a step Kapur has already considered. Cohn and Steinberg emphasized that their proposed path for Honeywell is not unprecedented, pointing out that investor sentiment has moved away from conglomerates in favor of more focused companies.

As Honeywell’s board weighs Elliott’s recommendations, the company’s future remains uncertain, but Elliott’s pressure may catalyze significant changes to its longstanding structure. With this move, Elliott hopes to add Honeywell to its track record of successful activist campaigns, having previously advocated for similar strategic breakups in companies like Marathon Petroleum and Alcoa.

Shift4’s Acquisition of Givex: A Game-Changer in the Global Payment and Loyalty Solutions Market

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Expansion of global reach with 130,000+ new locations
– Enhanced offering with advanced gift card and loyalty programs
– Strategic alignment for increased customer value and retention

Shift4, the leading integrated payments and commerce technology company, is set to make waves in the global market with its latest acquisition announcement. The company has signed a definitive arrangement agreement to acquire Givex Corp., a renowned provider of gift cards, loyalty programs, and point-of-sale solutions. This strategic move is poised to reshape the landscape of payment processing and customer engagement technologies.

The acquisition, expected to close in the fourth quarter of this year, will significantly expand Shift4’s global footprint. With Givex’s impressive network of over 130,000 active locations across more than 100 countries, Shift4 is positioning itself as a major player in the international payments arena. This expansion not only increases Shift4’s customer base but also opens up new markets and opportunities for growth.

One of the most compelling aspects of this acquisition is the enhancement of Shift4’s service offerings. Givex brings to the table a suite of robust gift card and e-gift solutions, along with customizable loyalty programs that have been adopted by industry giants such as Nike, Marriott, and Wendy’s. These additions will allow Shift4 to offer a more comprehensive package to its existing clients, potentially increasing customer retention and attracting new business.

The synergy between the two companies is evident in their complementary technologies. Shift4’s end-to-end payment solution, combined with Givex’s value-added engagement services, creates a powerful toolkit for businesses looking to streamline their operations and enhance customer relationships. This integration is expected to deliver an unparalleled package to both companies’ customer bases, setting a new standard in the industry.

From a financial perspective, this acquisition aligns perfectly with Shift4’s capital deployment strategy. By acquiring a company with an established customer base, Shift4 is effectively lowering its customer acquisition costs while simultaneously expanding its service portfolio. This approach is likely to contribute positively to Shift4’s bottom line and create long-term value for shareholders.

The merger also presents exciting opportunities for innovation. As the payments industry continues to evolve, the combined expertise of Shift4 and Givex could lead to the development of cutting-edge solutions that address emerging market needs. This potential for innovation could be a key differentiator in a highly competitive market.

As businesses increasingly prioritize customer engagement and loyalty, the timing of this acquisition couldn’t be better. The integration of Givex’s loyalty and gift card solutions into Shift4’s existing infrastructure will enable businesses to create more personalized and rewarding experiences for their customers. This focus on customer retention and engagement is crucial in today’s market, where consumer loyalty is harder than ever to maintain.

In conclusion, Shift4’s acquisition of Givex Corp. marks a significant milestone in the company’s growth strategy. By expanding its global reach, enhancing its product offerings, and strengthening its market position, Shift4 is well-positioned to capitalize on the growing demand for integrated payment and loyalty solutions. As the transaction moves towards completion, industry observers and stakeholders will be watching closely to see how this strategic move unfolds and shapes the future of payment processing and customer engagement technologies.

Noble Capital Markets Investor Events

Posted on by cpatches

Noble Capital Markets, a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving emerging growth companies, hosts a wide range of investor events throughout the year, including non-deal roadshows and 1×1 days around the United States and virtually, a multi-sector virtual equity conference, and Noble’s flagship in-person equity conference, NobleCon.

Noble Capital Markets Emerging Growth Virtual Equity Conference

June 4-5, 2025

Presenting Company Registration is Now Open!

Set to be an immersive experience, bringing together investors, industry leaders, and experts from middle market public companies across all sectors. Featuring:

Corporate presentations with Fireside-style Q&A session proctored by Noble’s analysts and bankers

Scheduled 1×1 meetings with qualified investors

More than 50 presenting companies, representing a wide array of sectors.

In-Person Non-Deal Roadshows

Noble hosts in-person (and virtual) meetings with executives from companies listed on Channelchek throughout the United States (Worldwide, virtually). Qualified Investors, at all levels, as well as registered representatives, are welcome to attend these breakfasts, lunches, cocktail receptions, and 1×1 days at no cost, with no obligation to invest. Seating for these events is limited. Click below to view the calendar to request attendance.

Noble Capital Markets 20th Annual Emerging Growth Equity Conference

NobleCon has become the preeminent showcase of emerging growth companies. It’s about unfettered access to 200+ public company c-suite executives. Attendees ranging from high-net-worth individuals through to institutional portfolio managers. Panels of key opinion leaders covering topics that matter. Scheduled 1×1 meetings for qualified attendees. Past headliners ranging from Larry King to President George W. Bush. Networking and wind-down events designed to both entertain and keep productivity going. Organizational excellence in a technologically advanced environment. NobleCon20 at Florida Atlantic this December. If you’re looking for the next apple, this is your orchard.

Information on NobleCon21 Coming Soon!

Watch the Replays from NobleCon20 below

Virtual Equity Conferences

In 2024, Noble hosted 3 sector specific virtual equity conferences, featuring emerging growth public company executive presentations from a variety of sectors, Q&A sessions moderated by Noble’s Analysts and Bankers, and scheduled 1×1 meetings with qualified investors.

If you missed out on any of the virtual conferences this year, replays of the corporate presentations and moderated Q&A sessions are available to registered Channelchek members, at the links below.

Noble Capital Markets Emerging Growth Basic Industries Conference Presentation Replays

Noble Capital Markets Emerging Growth TMT / Consumer Conference Presentation Replays

Noble Capital Markets Emerging Growth Virtual Healthcare Conference Presentation Replays

Release – The GEO Group Announces Date for Second Quarter 2024 Earnings Release and Conference Call

Posted on by aweinsoff@channelchek.com

July 9, 2024

  • Earnings Release Scheduled for Wednesday, August 7, 2024 Before the Market Opens
  • Conference Call Scheduled for Wednesday, August 7, 2024 at 11:00 AM (Eastern Time)

BOCA RATON, Fla.–(BUSINESS WIRE)–Jul. 9, 2024– The GEO Group, Inc. (NYSE:GEO) (“GEO”) will release its second quarter 2024 financial results on Wednesday, August 7, 2024 before the market opens. GEO has scheduled a conference call and simultaneous webcast for 11:00 AM (Eastern Time) on Wednesday, August 7, 2024.

Hosting the call for GEO will be George C. Zoley, Executive Chairman of the Board, Brian R. Evans, Chief Executive Officer, Mark Suchinski, Chief Financial Officer, Wayne Calabrese, President and Chief Operating Officer, and James Black, President, GEO Secure Services.

To participate in the teleconference, please contact one of the following numbers 5 minutes prior to the scheduled start time:

1-877-250-1553 (U.S.)
1-412-542-4145 (International)

In addition, a live audio webcast of the conference call may be accessed on the Webcasts section of GEO’s investor relations home page at investors.geogroup.com. A webcast replay will remain available on the website for one year.

A telephonic replay will also be available through August 14, 2024. The replay numbers are 1-877-344-7529 (U.S.) and 1-412-317-0088 (International). The passcode for the telephonic replay is 4116450. If you have any questions, please contact GEO at 1-866-301-4436.

Pablo E. Paez 1-866-301-4436
Executive Vice President, Corporate Relations

Source: The GEO Group, Inc.

Kelly Services (KELYA) – Motion Recruitment Partners in the Fold

Posted on by slightbourne@noblecapitalmarkets.com

Tuesday, June 04, 2024

Kelly (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 350,000 people around the world and connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. Visit kellyservices.com and let us help with what’s next for you.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Completed. Kelly Services has completed the acquisition of Motion Recruitment Partners, LLC (“MRP”), from Littlejohn & Co., LLC, a private investment firm. As we highlighted in past reports, this is a transformational acquisition for Kelly, the largest in its history. We believe MRP will be a key driver in Kelly posting a higher revenue growth rate as well as continued expansion of Kelly’s adjusted EBITDA margin.

MRP Refresher. MRP is the parent company to a group of leading global talent solution providers. The acquisition of MRP strengthens the scale and capabilities of Kelly’s staffing and consulting solutions across technology, telecommunications, and government specialties in North America, and recruitment process outsourcing solutions globally.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Squarespace Buyout Could Unlock Hidden Potential for Small-Cap Tech Investors

Posted on by slightbourne@noblecapitalmarkets.com

In a $6.9 billion megadeal that underscores private equity’s rekindled appetite for undervalued tech assets, website builder Squarespace is being taken private by European investment giant Permira. This blockbuster buyout could have major reverberations across the small-cap software landscape as the No-Code movement continues disrupting how businesses establish digital presences.

For small and micro-cap investors attuned to sifting out overlooked gems, the Squarespace acquisition shines a spotlight on a vital but often-neglected corner of the tech universe. Despite its ubiquity in helping small businesses, freelancers, and entrepreneurs create web presences, the versatile platform had seen its public market value plummet from pandemic-era highs over $8 billion to just $2 billion last year.

Permira’s acquisition at a nearly $7 billion valuation represents both validation of Squarespace’s resilient business model and the turnaround potential achievable under private ownership insulated from quarterly earnings pressures. It’s a staggering premium to where shares traded for much of the past 18 months.

At the heart of Squarespace’s appeal is its flagship website builder offering an intuitive, drag-and-drop interface enabling rapid launches of customized online storefronts, portfolios, and digital hubs. This democratization of web development tooling has fueled Squarespace’s growth into a over $1 billion annual revenue business catering to small and medium enterprises (SMEs).

However, Squarespace is far more than just websites. It encompasses a full ecosystem powering e-commerce transactions, online marketing campaigns, appointment booking, analytics and other capabilities critical for SMEs to effectively run digital operations. Its recent exploration of generative AI to automate content creation and email campaigns makes Squarespace a prime platform for capitalizing on the latest tech disruptors reshaping modern business workflows.

This is the type of robust, diversified product suite often valued at premium multiples in large-cap counterparts. Yet Squarespace languished in public market purgatory as Wall Street consistently underappreciated the depth of its platform and upside potential to cross-sell new offerings across its vast installed SME customer base.

For Permira, taking the company private removes constraints imposed by quarterly earnings whiplash and nearsighted market mentalities. It gives Squarespace’s visionary founder and CEO Anthony Casalena — who is staying aboard — considerable flexibility to focus resources on longer-term initiatives like AI, fin-tech, and verticalized solutions to create more enduring competitive advantages.

From the acquirer’s standpoint, Squarespace represents a savvy, well-timed bet on secularly ingrained tech trends expected to drive durable growth for years to come. The democratization of business tools for an entire generation of entrepreneurs and small enterprises is underpinned by rising self-employment, gig-economy dynamics, and startup formation catalyzing demand for easy, affordable website builders and marketing automations.

It’s little surprise Permira sees the opportunity to build a true industry juggernaut by capitalizing on Squarespace’s headstart in capturing this coveted market as digital transformation initiatives proliferate. The PE firm has a proven playbook for propelling verticalized software champions forward through its investments across sectors like cybersecurity, fintech, and manufacturing.

For smaller investors able to scour opportunities more nimbly than institutional counterparts, the Squarespace deal highlights several key themes to monitor going forward:

First, differentiated innovators commercializing technologies that flatten the digital playing field consistently fetch premium valuations, even amidst broader tech routs. As entrepreneurship and SME formation remain robust, enablers of this ecosystem will stay in hot demand.

Secondly, the abundance of depressed small-cap software valuations creates fertile ground for well-capitalized consolidators to pounce. Many unloved public companies commanding strong niches and cash flows could become prime targets for buyouts aiming to revitalize growth trajectories away from quarterly investor scrutiny.

Finally, generational tech disruptors like no-code platforms, AI, fin-tech and vertical SaaS models are seen as highly strategic assets warranting aggressive investments from value-conscious buyers. As industry convergence intensifies, small-caps effectively straddling multiple megatrends could emerge as diamonds in the rough.

The Squarespace saga underscores why diligent small-cap investors must maintain a watchful eye for overlooked assets with compelling runway stories. In today’s environment of dizzying tech change and plentiful private capital awaiting deployment, the most unassuming names may harbor some of the market’s most extraordinary upside opportunities.

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Perficient to be Acquired by EQT, Taken Private

Posted on by cpatches

Perficient (NASDAQ: PRFT), a global digital consultancy renowned for its transformative solutions for enterprises and brands, has made headlines with its recent announcement of an acquisition agreement. The company is set to be acquired by an affiliate of BPEA Private Equity Fund VIII, part of EQT AB, a prominent global investment organization. This all-cash transaction, valued at approximately $3.0 billion, marks a significant milestone for Perficient and its shareholders.

Key Details of the Acquisition:

  • Perficient has entered into a definitive agreement with EQT AB for acquisition in an all-cash transaction.
  • The deal values Perficient at an enterprise value of approximately $3.0 billion.
  • Perficient stockholders will receive $76 per share, representing a remarkable 75% premium to Perficient’s closing stock price on April 29.
  • The transaction has been unanimously approved by Perficient’s board of directors and is expected to close by the end of the year.

Rationale Behind the Acquisition:

  • Jeffrey Davis, Chairman of the Board of Perficient, highlighted the comprehensive review conducted by the board to maximize value for shareholders.
  • The acquisition provides shareholders with compelling, certain cash value for their shares while enabling Perficient to continue supporting clients in achieving business success.
  • By partnering with EQT, Perficient aims to leverage resources and expertise to accelerate its growth trajectory and enhance its position as a global digital consultancy leader.

Impact on Perficient and Shareholders:

  • Following the transaction’s closure, Perficient will transition from being a publicly traded company on NASDAQ to a private entity.
  • The company plans to remain headquartered in St. Louis, with Tom Hogan continuing in his role as CEO and the current management team expected to stay onboard.
  • Perficient’s commitment to delivering innovative digital transformation solutions remains unwavering, supported by EQT’s strategic backing.

Market Response and Guidance Withdrawal:

  • The announcement of the acquisition propelled Perficient’s stock, with PRFT surging more than 50% in early Monday trading.
  • In response to the acquisition news, Perficient withdrew its guidance for the full year, reflecting the transformative nature of the impending transaction.

Perficient’s acquisition by EQT marks a pivotal moment in the company’s journey, reflecting its commitment to maximizing shareholder value and accelerating growth. With a focus on delivering innovative digital solutions, Perficient remains poised to continue its legacy of excellence in the ever-evolving digital landscape. As the transaction progresses, stakeholders eagerly anticipate the next chapter in Perficient’s evolution under EQT’s strategic stewardship.

Release – Kelly Announces First-Quarter 2024 Conference Call

Posted on by aweinsoff@channelchek.com

Research News and Market Data on KELYA

April 24, 2024

TROY, Mich., April 24, 2024 (GLOBE NEWSWIRE) — Kelly, a leading global specialty talent solutions provider, will release its first-quarter earnings before the market opens on Thursday, May 9, 2024. In conjunction with its first-quarter earnings release, Kelly will publish a financial presentation on the Investor Relations page of its public website and will host a conference call at 9 a.m. ET.

The call may be accessed in one of the following ways:

Via Internet:
kellyservices.com

Via the Telephone
(877) 692-8955 (toll free) or (234) 720-6979 (caller paid)
Enter access code 5728672
After the prompt, please enter “#”

A recording of the conference call will be available after 1:30 p.m. ET on May 9, 2024, at (866) 207-1041 (toll-free) and (402) 970-0847 (caller-paid). The access code is 5728672#. The recording will also be available at kellyservices.com during this period.

About Kelly

Kelly Services, Inc. (Nasdaq: KELYA, KELYB) helps companies recruit and manage skilled workers and helps job seekers find great work. Since inventing the staffing industry in 1946, we have become experts in the many industries and local and global markets we serve. With a network of suppliers and partners around the world, we connect more than 500,000 people with work every year. Our suite of outsourcing and consulting services ensures companies have the people they need, when and where they are needed most. Headquartered in Troy, Michigan, we empower businesses and individuals to access limitless opportunities in industries such as science, engineering, technology, education, manufacturing, retail, finance, and energy. Revenue in 2023 was $4.8 billion. Learn more at kellyservices.com.

KLYA-FIN

Analyst & Media Contact:
Scott Thomas
(248) 251-7264
scott.thomas@kellyservices.com