Broadsoft (BSFT) Takeover Deal 'Seems Low', Other Bids Could Emerge - William Blair

October 23, 2017 12:21 PM EDT
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William Blair analyst Dmitry Netis said the $55 takeover bid for Broadsoft (NASDAQ: BSFT) from Cisco (NASDAQ: CSCO) "seems low" and other strategic buyers could emerge.

"Our back-of-envelope math and DCF analysis pegged the fair value of BroadSoft between $60 and $70 per share, with PE interest setting a backstop at the lower end of this range," the analyst said.

Netis said if management had a choice between an all-cash deal with strategic at $55/share and a $60/share leveraged buyout, they could why Broadsoft chose Cisco. However, if another strategic buyer could emerge, it could spark a bidding war. They think Amazon (NASDAQ: AMZN) makes the most sense.



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