Q: Hi, Could you comment on this acquisition/carve out deal by Lumine group. Thanks
" 08:44 AM EST, 12/20/2023 (MT Newswires) -- Lumine Group Inc. (LMN.TO), a global buy-and-hold forever acquirer of communications and media software businesses, said Wednesday that, through one of its wholly-owned subsidiaries, it has signed a definitive agreement to buy the Device Management and Service Management Platform businesses from Nokia (NYSE: NOK) for 185 million euros ($270.3 million).
According to a statement, this will mark Lumine Group's second carve-out transaction with the Finnish multinational giant.
After the deal, Lumine Group will restore the Motive brand as the new corporate entity for the Device Management and Service Management Platform services as a stand-alone business unit within Lumine Group.
The total purchase price includes a contingent consideration of up to 35 million euros based on the performance of the business during the first year after close.
The deal is expected to close in the first quarter of 2024."
Thank You
" 08:44 AM EST, 12/20/2023 (MT Newswires) -- Lumine Group Inc. (LMN.TO), a global buy-and-hold forever acquirer of communications and media software businesses, said Wednesday that, through one of its wholly-owned subsidiaries, it has signed a definitive agreement to buy the Device Management and Service Management Platform businesses from Nokia (NYSE: NOK) for 185 million euros ($270.3 million).
According to a statement, this will mark Lumine Group's second carve-out transaction with the Finnish multinational giant.
After the deal, Lumine Group will restore the Motive brand as the new corporate entity for the Device Management and Service Management Platform services as a stand-alone business unit within Lumine Group.
The total purchase price includes a contingent consideration of up to 35 million euros based on the performance of the business during the first year after close.
The deal is expected to close in the first quarter of 2024."
Thank You
5i Research Answer:
These types of deals are why we like LMN; while financial details are light, other than the price noted, it is a typical 'buy-what-a-big-company-doesn't-want' and then improve it with better focus and efficiency. As the second deal with Nokia, it seems both companies like the arrangement. We assume it is accretive, and while not 'huge' is still a fairly sizeable deal. Investors like it today, and we would expect more deals on a more or less ongoing basis from LMN.