Sword Group: Acquisition of Active Risk: Sword is back!
CORPORATE, Fair Value EUR18 (+51%)
This morning Sword announced its intention to acquire Active Risk Group, an AIM-listed enterprise risk management software vendor, with a scheme of arrangement at 35.2p per share or GBP11.8m in cash representing a 56% premium vs. yesterday’s closing price. Such a deal, which we estimate to be EPS accretive in the mid-single digits from 2014, marks the resumption of Sword’s M&A activity. Other deals may follow in the coming quarters, which would create positive catalysts for the stock.
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