Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

<p>EMIS Group’s year-end update confirms that FY22 revenue and adjusted operating profit were in line with the board’s expectations and it closed the year with net cash of £45.9m. The company also confirmed that a merger notice has been filed with the Competition and Markets Authority (CMA) regarding its takeover by UnitedHealth. The CMA’s Phase One investigation period commences on 23 January and EMIS expects the acquisition to complete in late Q123 or early Q223.</p>

EMIS Group’s year-end update confirms that FY22 revenue and adjusted operating profit were in line with the board’s expectations and it closed the year with net cash of £45.9m. The company also confirmed that a merger notice has been filed with the Competition and Markets Authority (CMA) regarding its takeover by UnitedHealth. The CMA’s Phase One investigation period commences on 23 January and EMIS expects the acquisition to complete in late Q123 or early Q223.

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>Davidson Kempner and others may seek an improved offer of up to 3,500p/share, 29.7x EV/Fwd EBIT, in line with Ideagen's acquisition multiples. Gross spread is +2.38%.</li>
<li>Assuming AVEVA can reach 2018a 34.7% EBITDA margins and increase revenues, the offer price would seem cheap. An increase to 3,300p seems feasible, £4,073 million, similar to the Bridge Facility.</li>
<li>Current net debt/EBITDA is 1.3x and EBIT/interest is 33.6x, so it could comfortably take on that additional debt. At 3,300p, proforma net debt/EBITDA would be 1.9x, before adding any synergies.</li>
</ul>


Davidson Kempner and others may seek an improved offer of up to 3,500p/share, 29.7x EV/Fwd EBIT, in line with Ideagen's acquisition multiples. Gross spread is +2.38%.
Assuming AVEVA can reach 2018a 34.7% EBITDA margins and increase revenues, the offer price would seem cheap. An increase to 3,300p seems feasible, £4,073 million, similar to the Bridge Facility.
Current net debt/EBITDA is 1.3x and EBIT/interest is 33.6x, so it could comfortably take on that additional debt. At 3,300p, proforma net debt/EBITDA would be 1.9x, before adding any synergies.


Schneider Electric/​Aveva: Potential Offer Price Sweetening

<p>EMIS made steady progress in H122, completing two acquisitions within the EMIS Enterprise business and reporting organic growth in group revenue and adjusted operating profit. A proposed interim dividend of 17.6p is payable on 3 November. The company anticipates that the takeover will complete in Q422.</p>

EMIS made steady progress in H122, completing two acquisitions within the EMIS Enterprise business and reporting organic growth in group revenue and adjusted operating profit. A proposed interim dividend of 17.6p is payable on 3 November. The company anticipates that the takeover will complete in Q422.

<ul>
<li>Schneider has agreed a 3,100p (+13p interim) cash offer for the remaining 40.86% of AVEVA (41% premium, 26.7x EV/Fwd EBIT, 30.5x Fwd P/E), which some dub opportunistic.</li>
<li>The offer price is in line with average multiples for the last 5Y, and there's execution risk in the model transition of AVEVA, but riches may lie ahead. </li>
<li>Gross spread is +0.8% (+interim), the market expects a sweetening (no large shareholder has irrevocably undertaken to tender); the daily average GBP volume since 23 August has been c.£62 million.</li>
</ul>


Schneider has agreed a 3,100p (+13p interim) cash offer for the remaining 40.86% of AVEVA (41% premium, 26.7x EV/Fwd EBIT, 30.5x Fwd P/E), which some dub opportunistic.
The offer price is in line with average multiples for the last 5Y, and there's execution risk in the model transition of AVEVA, but riches may lie ahead. 
Gross spread is +0.8% (+interim), the market expects a sweetening (no large shareholder has irrevocably undertaken to tender); the daily average GBP volume since 23 August has been c.£62 million.


Schneider Electric/Aveva: Recommended Minorities Buyout

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<p>For our next Webinar, we are delighted to welcome back Analyst <a href="https://www.smartkarma.com/profiles/jesus-rodriguez-aguilar" target="_blank" data-smartkarma-citation="accounts:5842" rel="noopener">Jesus Rodriguez Aguilar</a> who will take us through his top ideas in Europe's M&amp;A landscape.</p>
<div>
<h3>The webinar was hosted on Wednesday, 27 July 2022, 17:00 SGT/HKT.</h3>
<p>Subscribe to our podcast feed and listen on the go:</p>
<p><iframe src="https://open.spotify.com/embed/episode/1neyVsMriYyIfqPGV12AJ6?utm_source=generator" width="100%" height="352" style="border-radius: 12px;" frameborder="0" allowfullscreen="allowfullscreen" allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture"></iframe></p>
</div>
<div>
<p>Jesus Rodriguez Aguilar is an Event-Driven Analyst looking across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations.</p>
</div>

For our next Webinar, we are delighted to welcome back Analyst Jesus Rodriguez Aguilar who will take us through his top ideas in Europe's M&amp;A landscape.

The webinar was hosted on Wednesday, 27 July 2022, 17:00 SGT/HKT.
Subscribe to our podcast feed and listen on the go:



Jesus Rodriguez Aguilar is an Event-Driven Analyst looking across sectors at opportunities arising from securities mispricing (both credit and equity), share classes, bid announcements, prospective bids, and special situations.


Smartkarma Webinar | European Event-Driven: Top Ideas

United Kingdom

EMIS Group provides connected healthcare software and systems for healthcare professionals across the United Kingdom. Its solutions serve primary, community, acute, and social care, as well as community pharmacies, offering integrated care technology, patient-facing services, and data analytics. The company is headquartered in Leeds, United Kingdom, and was founded in 1987.

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EMIS Group (EMIS LN)

EMIS Group - Update on takeover process

EMIS Group’s year-end update confirms that FY22 revenue and adjusted operating profit were in line with the board’s expectations and it closed the...

Edison Investment Research

Schneider Electric/Aveva: Potential Offer Price Sweetening

Hedge fund Davidson Kempner Capital Management is building a stake in Aveva (currently 3.5%) and will join others in pushing Schneider Electric...

Jesus Rodriguez Aguilar

EMIS Group - On track

EMIS made steady progress in H122, completing two acquisitions within the EMIS Enterprise business and reporting organic growth in group revenue...

Edison Investment Research

Schneider Electric/Aveva: Recommended Minorities Buyout

The offer price does not come as a surprise and the operation, however dilutive, makes strategic sense for Schneider. Gross spread is positive and...

Jesus Rodriguez Aguilar

Smartkarma Webinar | European Event-Driven: Top Ideas

On 27 July, 5 PM SGT, join our Webinar with Analyst Jesus Rodriguez Aguilar who will share his top ideas in Europe's M&A landscape.

Smartkarma Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

EMIS Group - Update on takeover process

EMIS Group’s year-end update confirms that FY22 revenue and adjusted operating profit were in line with the board’s expectations and it closed the...

Edison Investment Research

Schneider Electric/​Aveva: Potential Offer Price Sweetening

Hedge fund Davidson Kempner Capital Management is building a stake in Aveva (currently 3.5%) and will join others in pushing Schneider Electric...

Jesus Rodriguez Aguilar

EMIS Group - On track

EMIS made steady progress in H122, completing two acquisitions within the EMIS Enterprise business and reporting organic growth in group revenue...

Edison Investment Research

Schneider Electric/Aveva: Recommended Minorities Buyout

The offer price does not come as a surprise and the operation, however dilutive, makes strategic sense for Schneider. Gross spread is positive and...

Jesus Rodriguez Aguilar

Smartkarma Webinar | European Event-Driven: Top Ideas

On 27 July, 5 PM SGT, join our Webinar with Analyst Jesus Rodriguez Aguilar who will share his top ideas in Europe's M&A landscape.

Smartkarma Research

Schneider Electric/Aveva: Potential Offer Price Sweetening