European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>The board of <a href="https://www.smartkarma.com/entities/softwareone-holding-ag" target="_blank" data-smartkarma-citation="entities:39864:1" rel="noopener">SoftwareONE Holding (SWON SW)</a> rejected on 24 July a revised CHF 19.50-20.50 offer from Bain Capital and said it began a strategic review to seek the best value.</li>
<li>CHF 19.5 represents a 40% premium, Gross spread to the low point of the range is 4.2%. 0x EV/NTM EBITDA and 19.5 Fwd P/E.</li>
<li>This could trigger upwards revisions and would justify the Board asking for a higher offer. I'd hold on to the shares as Bain Capital could increase the offer a bit.</li>
</ul>


The board of SoftwareONE Holding (SWON SW) rejected on 24 July a revised CHF 19.50-20.50 offer from Bain Capital and said it began a strategic review to seek the best value.
CHF 19.5 represents a 40% premium, Gross spread to the low point of the range is 4.2%. 0x EV/NTM EBITDA and 19.5 Fwd P/E.
This could trigger upwards revisions and would justify the Board asking for a higher offer. I'd hold on to the shares as Bain Capital could increase the offer a bit.


Bain Capital/​SoftwareOne: Bargaining for a Better Offer

<ul>
<li>Bain Capital has made a CHF 18.5/share offer proposal for <a href="https://www.smartkarma.com/entities/softwareone-holding-ag" target="_blank" data-smartkarma-citation="entities:39864:1" rel="noopener">SoftwareONE Holding (SWON SW)</a>, 33% premium, CHF 2,933 million implied equity value, 9.8x EV/NTM EBITDA and 18.7 Fwd P/E. </li>
<li>The offer is supported by founding shareholders (c.29.1% aggregate), who'd co-invest alongside Bain. SoftwareOne, in the middle of a turnaround, trades cheap vs. peers and my fair-value estimate (CHF 19.92/share).</li>
<li>On IBES estimates, without significant cost-cutting, at CHF 20/share, Bain could achieve 18.6% IRR by year 6, thus could offer more. Gross spread is 3.7%. Considering prospects, I'd be long.</li>
</ul>


Bain Capital has made a CHF 18.5/share offer proposal for SoftwareONE Holding (SWON SW), 33% premium, CHF 2,933 million implied equity value, 9.8x EV/NTM EBITDA and 18.7 Fwd P/E. 
The offer is supported by founding shareholders (c.29.1% aggregate), who'd co-invest alongside Bain. SoftwareOne, in the middle of a turnaround, trades cheap vs. peers and my fair-value estimate (CHF 19.92/share).
On IBES estimates, without significant cost-cutting, at CHF 20/share, Bain could achieve 18.6% IRR by year 6, thus could offer more. Gross spread is 3.7%. Considering prospects, I'd be long.


Bain Capital/SoftwareOne: Room for a Better Offer

Germany

SoftwareONE Holding AG provides IT services. The Company offers cloud computing, portfolio management, procurement, unified communication, and other related solutions. SoftwareONE Holding serves customers worldwide.

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SoftwareONE Holding (SWON SW)

Bain Capital/SoftwareOne: Bargaining for a Better Offer

The Board unanimously agreed that the second indicative offer CHF 19.5-20.5 does not adequately value the Company and is not in the best interest...

Jesus Rodriguez Aguilar

Bain Capital/SoftwareOne: Room for a Better Offer

In a similar situation, the tussle for Software AG, Silver Lake had top shareholders on board and had to sweeten the offer price to win...

Jesus Rodriguez Aguilar

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Bain Capital/​SoftwareOne: Bargaining for a Better Offer

The Board unanimously agreed that the second indicative offer CHF 19.5-20.5 does not adequately value the Company and is not in the best interest...

Jesus Rodriguez Aguilar

Bain Capital/SoftwareOne: Room for a Better Offer

In a similar situation, the tussle for Software AG, Silver Lake had top shareholders on board and had to sweeten the offer price to win...

Jesus Rodriguez Aguilar

Bain Capital/SoftwareOne: Bargaining for a Better Offer