Hi there,
DND has certainly been on an acquisition binge. That is two transformative acquisitions in a matter of a week. Last week's deal allows it to expand its presence in an entirely new geographical market. Today's deal, expands significantly on its Real Estate vertical and further diversifies operations domestically.
Today's deal, is the largest in company history (by a long shot) and although it was a pricey transaction, it is getting the largest provider of real estate practice management software in the country. In fact, the CEO said that DoProcess is DND's "No.1 Competitor". That means, it significantly expands on the company's moat and further cements its dominant position in the market place. The deal gives it a significant presence in Ontario (where it was weak) and analysts are all in agreement that this is probably the most synergistic acquisition to date - likely the reason for the premium.
Overall, we really like what D&D is doing. Historically, it had a strong track record of acquiring and integrating businesses. It is continuing this trend as a publicly traded company, closing 4 deals since it went public. Since this is the biggest it will have to integrate, it is thus the riskiest. However, as the one with the most potential synergies and a company it knows extremely well, it was a smart move by management. Myself and Dan are both long the company - and intend to stay long for a long time.
Mat