Hi there,
Yes - big deal indeed. It has 'transformational' potential and gives it a leading position in the hydrogen industry and increases its exposure to Europe. I am not sure how the markets will react given it concurrently announced a bought deal at $5.80 per share (~18% discount to market price) to finance the transaction. So you have a big share issue and $$ raise to complement a big acquisition.
I found Xebec to be a little expensive previously, so leveraging its high share price to close this deal is a sign of good management. Long-term, I like what I am seeing out of Xebec and it is quickly becoming best-in-class. Valuations are still a little high, but if it can execute and match growth expectations, the company should be a strong long-term hold.
I am not sure where this will go today, but I'd considering take a close look at it if it dipped. Strong company, nice revenue growth, leader in the space and a big worldwide shift towards renewables supports a long-term thesis. Downside is that it is a little expensive here and has a terrible history of meeting analysts estimates - so inconsistent delivery vs expectations. Of note, likely will be added to our watchlist.
Mat