Going “acquisition mode” is recipe of disaster. Even they would pay that with cash, acquisition should be always weighted against buybacks, their deeply discounted stock. Almost impossible create more shareholder value than buybacks. That said, i think their business model is not that strong yet, some kind of diversification could be helpful.
It remains to be seen, can they pull out some kind of "strategic" acquisition with right price. I’m happy that my money is not on the table, better to watch from the sidelines.