An Unusual Merger Should Boost This Small Cap

The market has shrugged at a merger that makes a ton of sense

Highlights:

• This small cap tech stock just merged with a UK peer.

• Investors seemed to think this was a takeover. It isn’t, but it’s still a tie-up that makes a great deal of sense.

• Pro forma for synergies, the combined business now trades below 10x forward EBITDA.

• There are clear cyclical risks but we see a path toward a strong multi-year rally.