I still like the stock. It made a pretty significant acquisition, one that is expected to be immediately accretive to the company's earnings. In layman's terms, they're going to see growth from it immediately.
The acquisition was of Municipal Accounting Systems. It generated $7.4 million in revenue and $4.3 million in EBITDA. This will add to Sylogist's trailing 12 month revenue of $38.74 million and EBITDA of $18.67 million. So, you can see this is a pretty significant increase, and the company expects it to deliver 20% growth to revenue and EBITDA moving forward.
And the best part, the company is paying for it in cash and debt from a credit facility. So, no shareholder dilution.
MAS essentially serves the Oklahoma public education market. So, this is another company in a very secure and reliable market, which as I mentioned in the previous question is why I really like them.
I know it's tough to consider a stock once it's ran up a bunch like this, but the run up is because of the immediate boost the acquisition delivers.