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Convio (CNVO) gets acquired by Blackbaud (BLKB) for $16/share

Posted by MGI Research
MGI Research
MGI Research Analyst Team
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on Tuesday, 17 January 2012
in SaaS

The $16 per share deal to acquire Convio (CNVO) by Blackbaud (BLKB) translates into an enterprise value that is slightly below that projected by our March 2011 SaaS valuation model but is still within about 10% of the target. We believe, the price reflects Convio's relatively small revenue of $77 Million and sub-par growth, profitability and efficiency as measured by the MGI Index (CNVO MGI Index is 643). In our view, the valuation offered is also a function of a dearth of potential buyers in this space. BLKB paid a 49% premium vs. the last closing price for CNVO but still seemingly got a good deal.

© 2012 MGI Research, LLC
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SAP Concedes - Questions Concerning SAP's bid for SuccessFactors

Posted by MGI Research
MGI Research
MGI Research Analyst Team
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on Friday, 09 December 2011
in SaaS

While the overall analyst commentary generally has been pretty constructive and supportive of SAP’s $3.4 Billion bid for SuccessFactors, Inc., many questions remain.  Although many analysts believe SAP is overpaying for SuccessFactors (SFSF), in our view, the valuation is not unreasonable and is not the critical factor in assessing this deal.

© 2011 MGI Research, LLC
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IBM Purchase of DemandTec Reconfirms MGI SaaS Valuation Model

Posted by Igor Stenmark
Igor Stenmark
Igor Stenmark is a Managing Director of MGI Research.
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on Thursday, 08 December 2011
in SaaS

For a 2nd time in less than a week, a purchase of a SaaS vendor reconfirmed our SaaS valuation model. IBM is paying $440Million in cash to acquire San-Mateo, CA-based DemandTec (DMAN).

© 2011 MGI Research, LLC
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SAP Did not Overpay for SuccessFactors

Posted by MGI Research
MGI Research
MGI Research Analyst Team
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on Tuesday, 06 December 2011
in SaaS

According to the MGI SaaS valuation model, SAP did not overpay for its acquisition of SuccessFactors.

© 2011 MGI Research, LLC
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New MGI Research Blog Launched

Posted by MGI Research
MGI Research
MGI Research Analyst Team
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on Saturday, 29 October 2011
in Tech Industry Current Events

The new MGI Research Blog is now officially live. It is now integrated into our main web site. We will continue to maintain the original MGI Research Blog on Typepad as a mirror to the new site.

We welcome your comments and suggestions on our posts.

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