BTS: Acquires Netmind in Spain - ABG

Strengthens the Spanish position through M&A
Adds 3.5% to sales, we estimate just below group margin
Price not disclosed, share likely up 1-2%

BTS has acquired Spanish based consulting company Netmind, founded in 1987. With offices in Barcelona and Madrid and operations in USA and Latin America, Netmind delivers world class innovative talent training and development services to help its customers transform their work models, foster new capabilities, and drive powerful cultural changes to successfully implement their digital and agile strategies. In 2020 Netmind generated consolidated revenues around EUR 6.5m with a diverse team of +50 talented employees and a number of associated collaborators. Against the back of strong demand for its services, the company demonstrated strong resilience against the impacts of the pandemic, according to BTS.

Including Netmind into BTS would add 3.5% to group sales, and we estimate the profitability to be in line, or slightly below, the margin of BTS. The reason for that is Netmind’s sales/employee of SEK ~1.3m/year vs BTS’ LTM of SEK ~1.9m, which makes us believe that Netmind is slightly more dependent on consulting revenues rather than software licenses. The cash consideration is not disclosed, and the share based payment (EUR 0.5m) dilutes number of shares by less than 0.1%. We therefore estimate an EPS contribution of around 3.0-3.4%, and share likely up slightly below that today is a fair reaction (1-2%).

Länk till analysen i sin helhet: https://www.introduce.se/foretag/bts-group/Equity-research/2021/9/bts-group---acquires-netmind-in-spain/