Verve: Jun helps Verve blossom - Edison

Verve (formerly MGI – Media and Games Invest) has announced the acquisition of Jun Group for €170m (US$185m), part funded by a €40m directed share issuance. Jun is an excellent fit and scales up Verve’s demand side (ie serving advertisers and agencies) to 30% of the group. It is being sold by Nasdaq-listed Advantage Solutions, which is reducing its leverage by selling its non-core operations. It sought a speedy transaction, hence the attractive deal pricing of 3.8x EV/EBITDA. Synergies built into raised guidance come from revenue opportunities rather than cost deduplication. Given Jun’s EBITDA margins of over 50%, Verve’s margins should rise, with EPS further boosted by lower interest as a percentage of revenue. The current rating does not, in our view, reflect the group’s strong position.

Länk till analysen i sin helhet: https://www.edisoninvestmentresearch.com/research/company/verve

Länk till analysen i sin helhet: https://www.edisoninvestmentresearch.com/research/report/verve/preview