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Westell Technologies, Inc. Message Board

  • wasssssupppppp wasssssupppppp Sep 2, 2010 12:40 PM Flag

    Phenne

    What are the odds of WSTL being acquired over the next sixty days. If they do get acquired!, at what price. I know it's just a guess

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    • I think the odds for any tech company have gone up significantly over the last month...and it is not just about cloud computing.

      Companies are out there saying they are looking for deals...There is a ton of cash on the books...I think the theory is that if you can't grow top line growth fast enough you can but it.

      Westell with a enterprise value of about $76 million with sales of $170 million, being profitable and $61 million in cash just looks attractive...I would think especially for an Adtran or maybe even Tellabs.

      And that is just the existing business....Then there is the cloud...Who knows where this can go?????

      I think M&A is just getting started and the deeper it goes the more likely Westell gets a bid...Like I said on another post, I think we are entering a time frame where deals around $500 million won't be an issue.

      As for takout prices, in the last few months I thought the company was worth about $4 to $5 bucks and that is on record...Now after seeing what has been going on in M&A and the cloud I see $6 to $7 bucks and I don't think that is even an excessive valuation....At $7 bucks a share that still keeps us under that $500 million area I talked about where deal should go through without much concern....Just my opinion.

 
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