Dassault Systèmes: RTT acquisition conference call feedback: slightly accretive
NEUTRAL, Fair Value EUR90 vs. EUR88 (+7%)
We reiterate our Neutral rating but up our DCF-derived fair value to EUR90 from EUR88 following yesterday’s announcement of the acquisition of Realtime Technology (RTT). This deal will be slightly adj. EPS accretive in our view, but a bit dilutive to the operating margin. RTT will provide Dassault Systèmes the means to address corporate chief marketing officers (CMOs), who play an increasingly important role in product development. The acquisition of a content development company may be surprising (75% of revenues are made in Services and Content), but this business can be automated and be more profitable than it has been so far.
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