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On Wednesday, Canaccord Genuity analysts revised their rating on Quisitive Technology shares (QUIS:CN) (OTC: QUISF), downgrading the stock from Buy to Hold and adjusting the price target to C$0.57, down from the previous C$0.85. This change comes after Quisitive Technology announced on January 2, 2025, that it had entered into an acquisition agreement with H.I.G. Capital, a global alternatives investment firm based in Miami, Florida.
The acquisition is an all-cash transaction that values Quisitive Technology at an equity value of C$169.1 million or C$0.57 per share. This acquisition price is a 57% premium over the 20-day volume-weighted average price (VWAP) as of December 31, 2024, and a 52% premium over the closing price on that same day. The price reflects a multiple of 6.8 times enterprise value to EBITDA (EV/EBITDA) and 1.0 times enterprise value to sales (EV/Sales) based on Canaccord Genuity's 2025 estimates.
Canaccord Genuity's analysts have stated that they have not made any revisions to their estimates following the acquisition announcement. They also noted that they see no apparent regulatory risks associated with the acquisition and believe the likelihood of a competing bid at a premium to be low.
The acquisition by H.I.G. Capital represents a significant valuation of Quisitive Technology, aligning with the firm's strategic goals. The analysts' revised rating and price target reflect the acquisition price, providing current shareholders with a clear expectation of the stock's value moving forward.
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