Bravura Solutions has acquired FinoComp, which provides software to registry systems, for $25m. The acquisition is expected to deliver around $6.8m in revenue and $1.2m in operating earnings (EBITDA) on a pro forma basis.
Macquarie assesses the acquisition enhances the company’s wealth management capability. The decline in the share price recently is likely to be the result of an absence of short-term news flow, in the broker’s opinion.
Outperform rating and $5.55 target maintained.
Sector: Software & Services.
Target price is $5.55.Current Price is $3.98. Difference: $1.57 – (brackets indicate current price is over target). If BVS meets the Macquarie target it will return approximately 28% (excluding dividends, fees and charges – negative figures indicate an expected loss).
