Proact IT Group
Proact - Feedback from ABGSC Investor Days (ABG Sundal Collier)
2020-12-02 16:26
Good momentum continues in Q4, pent-up demand seen
Cetus Solutions acquisition integration on track
Multi-cloud is the future rather than pure cloud
Confident impression from CEOToday, we hosted CEO Jonas Hasselberg on the ABGSC Investor Days. Jonas gave a general introduction to Proact and what we thought was new information was primarily around the development during the pandemic. In Jonas view, the company has performed better than feared thinking back to the March situation, and he was also confident about the current run-rate and development going forward. He has not seen any negative effects on investment activity in Q4 as a result of the second wave of the pandemic, but expects the solid development seen in Q2 and Q3 to continue. He also mentioned that he has seen some signs of pent-up demand coming back.
Cetus Solutions acquisition on track
In conjunction with the Q3’20 report, Proact acquired the UK company Cetus Solutions. According to Jonas, the integration is on track and the identified synergies on both revenues and costs are expected to be slightly higher than previously thought. Employees of both companies have also shown a supportive mindset and positive view in the integration process. We think that sounds encouraging, and should lead to a successful integration and a lower post-synergy multiple as well as Proact may feel more comfortable in continuing its M&A journey.
Multi-cloud is the way forward to reach 8% EBITA margin
According to Jonas, there will be no pure shift from hardware based data storage to pure cloud based solutions. Enterprises will have different needs for different data types, and the way forward will be a multi-cloud solution consisting of both hardware, public clouds and private clouds. This is exactly what Proact offers. Proact targets an 8% EBITA margin, which will be reached through: 1) larger scale, 2) positive mix shift from more service revenues (going from current 40% of sales to +50%), and 3) higher efficiency in the delivery.
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