Last close As at 05/08/2026
EUR15.00
— 0.00 (0.00%)
Market capitalisation
EUR709m
Research: TMT
The announcement of the binding and irrevocable offer to gradually acquire the whole of ABF Group (ABF) is consistent with Tinexta’s strategy of internationalising its core businesses, in this case Business Innovation (BI), which is Tinexta’s second fastest growing (by revenue) and most profitable division, according to management guidance. The acquisition is expected to be accretive to Tinexta’s overall growth and profitability, with an expectation that ABF’s future growth will come from a combination of increasing its addressable market and adding incremental services.
Tinexta |
Business Innovation expansion in France |
Acquisition of ABF Group |
Professional services |
22 December 2023 |
Share price performance
Business description
Analysts
Tinexta is a research client of Edison Investment Research Limited |
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The announcement of the binding and irrevocable offer to gradually acquire the whole of ABF Group (ABF) is consistent with Tinexta’s strategy of internationalising its core businesses, in this case Business Innovation (BI), which is Tinexta’s second fastest growing (by revenue) and most profitable division, according to management guidance. The acquisition is expected to be accretive to Tinexta’s overall growth and profitability, with an expectation that ABF’s future growth will come from a combination of increasing its addressable market and adding incremental services.
Year end |
Revenue (€m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
301.5 |
57.5 |
0.83 |
0.30 |
24.8 |
1.5 |
12/22 |
357.2 |
73.6 |
1.07 |
0.51 |
19.2 |
2.5 |
12/23e |
411.0 |
81.1 |
1.06 |
0.47 |
19.4 |
2.3 |
12/24e |
462.3 |
96.0 |
1.22 |
0.26 |
16.9 |
1.3 |
12/25e |
507.6 |
111.8 |
1.45 |
0.35 |
14.1 |
1.7 |
Note: *PBT and EPS (fully diluted) are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Tinexta has announced the acquisition of an initial 73.9% stake in ABF, which should complete in Q124. The remaining 26.1% stake, to be covered by put and call options, will be acquired in equal parts in 2028 and 2029 based on ABF’s results through 2026 to 2028 at an average multiple of 9x adjusted EBITDA subject to performance within a floor and cap. ABF’s initial acquisition enterprise value of c €155m makes it Tinexta’s largest ever acquisition.
ABF’s core activity of providing consulting services to small and medium-sized enterprises (SMEs) in France which seek access to public funding for investment in innovation is very similar to that of Tinexta’s existing Italian subsidiary in BI, Warrant Hub, albeit the former operates in a more stable regulatory environment. With an estimated market position of fourth in a very fragmented French market, management believes ABF is well placed to take share as it seeks new partners to enhance its distribution and adds new services.
ABF has a diversified client base of more than 500 SMEs across different industries and operates with a local focus via a network of business partners, primarily banks.
The ABF business has produced strong growth in recent years, with a revenue CAGR of 45% in FY20–23 and its management projects a continuation of strong growth. It expects a revenue CAGR for ABF of 20–23% in 2023–27, which compares favourably with Tinexta’s guidance for BI of 13% per year in FY22–25. Also, ABF’s FY23e EBITDA margin of 48% compares to our FY23e margin of c 38% for BI. Our forecasts are unchanged until the acquisition completes.
The acquisition will be funded by internal financial resources, with expected pro forma net financial debt/EBITDA of less than 2x in FY23, including the acquisitions of ABF and Ascertia.
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Research: Healthcare
Basilea recently expanded its antifungal and antibacterial product pipeline with three new assets, including the latest addition, fosmanogepix. As a broad-spectrum antifungal (including multidrug-resistant fungi), fosmanogepix has a novel mechanism of action, a key differentiator in the rise of antifungal drug resistance. Two Phase III trials are expected to commence in mid- and late-2024 (in candidemia/invasive candidiasis and invasive mould infections, respectively) and a successful launch has the potential to refill the pipeline as the company’s lead asset Cresemba matures. We update our estimates and valuation to reflect the revised FY23 guidance and incorporate the potential contribution from fosmanogepix. Our overall valuation increases to CHF910.4m or CHF76.0/share (from CHF797.8m or CHF66.6/share previously). In the more immediate term, we view the US New Drug Application (NDA) decision on Zevtera (PDUFA date of 3 April 2024) as the next big catalyst for the company.