European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>The board of <a href="https://www.smartkarma.com/entities/softwareone-holding-ag" target="_blank" data-smartkarma-citation="entities:39864:1" rel="noopener">SoftwareONE Holding (SWON SW)</a> rejected on 24 July a revised CHF 19.50-20.50 offer from Bain Capital and said it began a strategic review to seek the best value.</li>
<li>CHF 19.5 represents a 40% premium, Gross spread to the low point of the range is 4.2%. 0x EV/NTM EBITDA and 19.5 Fwd P/E.</li>
<li>This could trigger upwards revisions and would justify the Board asking for a higher offer. I'd hold on to the shares as Bain Capital could increase the offer a bit.</li>
</ul>


The board of SoftwareONE Holding (SWON SW) rejected on 24 July a revised CHF 19.50-20.50 offer from Bain Capital and said it began a strategic review to seek the best value.
CHF 19.5 represents a 40% premium, Gross spread to the low point of the range is 4.2%. 0x EV/NTM EBITDA and 19.5 Fwd P/E.
This could trigger upwards revisions and would justify the Board asking for a higher offer. I'd hold on to the shares as Bain Capital could increase the offer a bit.


Bain Capital/​SoftwareOne: Bargaining for a Better Offer

<ul>
<li>Bain Capital has made a CHF 18.5/share offer proposal for <a href="https://www.smartkarma.com/entities/softwareone-holding-ag" target="_blank" data-smartkarma-citation="entities:39864:1" rel="noopener">SoftwareONE Holding (SWON SW)</a>, 33% premium, CHF 2,933 million implied equity value, 9.8x EV/NTM EBITDA and 18.7 Fwd P/E. </li>
<li>The offer is supported by founding shareholders (c.29.1% aggregate), who'd co-invest alongside Bain. SoftwareOne, in the middle of a turnaround, trades cheap vs. peers and my fair-value estimate (CHF 19.92/share).</li>
<li>On IBES estimates, without significant cost-cutting, at CHF 20/share, Bain could achieve 18.6% IRR by year 6, thus could offer more. Gross spread is 3.7%. Considering prospects, I'd be long.</li>
</ul>


Bain Capital has made a CHF 18.5/share offer proposal for SoftwareONE Holding (SWON SW), 33% premium, CHF 2,933 million implied equity value, 9.8x EV/NTM EBITDA and 18.7 Fwd P/E. 
The offer is supported by founding shareholders (c.29.1% aggregate), who'd co-invest alongside Bain. SoftwareOne, in the middle of a turnaround, trades cheap vs. peers and my fair-value estimate (CHF 19.92/share).
On IBES estimates, without significant cost-cutting, at CHF 20/share, Bain could achieve 18.6% IRR by year 6, thus could offer more. Gross spread is 3.7%. Considering prospects, I'd be long.


Bain Capital/SoftwareOne: Room for a Better Offer

Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

<ul>
<li>The SE600 index is one of the most widely followed benchmark indices in Europe. This index is rebalanced on a quarterly basis.</li>
<li>In this insight, we take a look at the potential index changes that could take place between now and the end of the December 2023 rebalance.</li>
<li>There are two more weeks for the base date. As things stand, there could be six ADDs/DELs during the December 2023 review and probably two more intra-review changes after that.</li>
</ul>


The SE600 index is one of the most widely followed benchmark indices in Europe. This index is rebalanced on a quarterly basis.
In this insight, we take a look at the potential index changes that could take place between now and the end of the December 2023 rebalance.
There are two more weeks for the base date. As things stand, there could be six ADDs/DELs during the December 2023 review and probably two more intra-review changes after that.


Quiddity Leaderboard SE600 Dec 23: 6 ADDs/DELs and Two Intra-Review Changes Possible

<ul>
<li>The SE600 index is one of the most widely followed benchmark indices in Europe. This index is rebalanced on a quarterly basis.</li>
<li>In this insight, we take a look at the potential index changes that could take place between now and the end of the December 2023 rebalance.</li>
<li>This includes a couple of intra-review index changes that could be triggered by the <a href="https://www.smartkarma.com/entities/dechra-pharmaceuticals-plc" target="_blank" data-smartkarma-citation="entities:21908:1" rel="noopener">Dechra Pharmaceuticals (DPH LN)</a> and <a href="https://www.smartkarma.com/entities/chr-hansen-holding-a-s" target="_blank" data-smartkarma-citation="entities:22322:1" rel="noopener">Chr Hansen Holding A/S (CHR DC)</a> takeover situations.</li>
</ul>


The SE600 index is one of the most widely followed benchmark indices in Europe. This index is rebalanced on a quarterly basis.
In this insight, we take a look at the potential index changes that could take place between now and the end of the December 2023 rebalance.
This includes a couple of intra-review index changes that could be triggered by the Dechra Pharmaceuticals (DPH LN) and Chr Hansen Holding A/S (CHR DC) takeover situations.


Quiddity Leaderboard SE600 Dec 23: Novartis-Sandoz, Dechra, CHR, and Others

Germany

SoftwareONE Holding AG provides IT services. The Company offers cloud computing, portfolio management, procurement, unified communication, and other related solutions. SoftwareONE Holding serves customers worldwide.

SoftwareONE Holding (SWON SW)

Bain Capital/SoftwareOne: Bargaining for a Better Offer

The Board unanimously agreed that the second indicative offer CHF 19.5-20.5 does not adequately value the Company and is not in the best interest...

Jesus Rodriguez Aguilar

Bain Capital/SoftwareOne: Room for a Better Offer

In a similar situation, the tussle for Software AG, Silver Lake had top shareholders on board and had to sweeten the offer price to win...

Jesus Rodriguez Aguilar

Quiddity Leaderboard SE600 Dec 23: 6 ADDs/DELs and Two Intra-Review Changes Possible

The one-way for the 6 ADDs/DELs expected for December is around US$80mn. On average, there could be around 1.6 days to buy for the 6 ADDs and 1.2...

Janaghan Jeyakumar, CFA

Quiddity Leaderboard SE600 Dec 23: Novartis-Sandoz, Dechra, CHR, and Others

I currently see six regular ADDs/DELs for the SE600 index in December 2023. Apart from that the Dechra and CHR deals could trigger two more intra...

Janaghan Jeyakumar, CFA

Bain Capital/​SoftwareOne: Bargaining for a Better Offer

The Board unanimously agreed that the second indicative offer CHF 19.5-20.5 does not adequately value the Company and is not in the best interest...

Jesus Rodriguez Aguilar

Bain Capital/SoftwareOne: Room for a Better Offer

In a similar situation, the tussle for Software AG, Silver Lake had top shareholders on board and had to sweeten the offer price to win...

Jesus Rodriguez Aguilar

Quiddity Leaderboard SE600 Dec 23: 6 ADDs/DELs and Two Intra-Review Changes Possible

The one-way for the 6 ADDs/DELs expected for December is around US$80mn. On average, there could be around 1.6 days to buy for the 6 ADDs and 1.2...

Janaghan Jeyakumar, CFA

Quiddity Leaderboard SE600 Dec 23: Novartis-Sandoz, Dechra, CHR, and Others

I currently see six regular ADDs/DELs for the SE600 index in December 2023. Apart from that the Dechra and CHR deals could trigger two more intra...

Janaghan Jeyakumar, CFA

Bain Capital/SoftwareOne: Bargaining for a Better Offer