Last close As at 05/08/2026
—
— 0.00 (0.00%)
Market capitalisation
—
Research: TMT
mic has announced the reverse takeover of Pyramid Computer, subject to full financing requirements. Pyramid is active in the high-growth market of digital kiosk solutions and expects to realise revenues of €55m in 2020 and EBIT of €4m. mic expects to surpass estimated market growth of >10% per year by adding selective acquisitions and entering new market segments.
mic |
Reverse takeover of Pyramid Computer
Technology |
Scale research report - Update
12 November 2020 |
Share price graph
Share details
Business description
Bull
Bear
Analyst
|
||||||||||||||||||||||||||
mic has announced the reverse takeover of Pyramid Computer, subject to full financing requirements. Pyramid is active in the high-growth market of digital kiosk solutions and expects to realise revenues of €55m in 2020 and EBIT of €4m. mic expects to surpass estimated market growth of >10% per year by adding selective acquisitions and entering new market segments.
Entering digital point-of-sale segment
Pyramid Computer is a specialist in automation solutions in the retail, hospitality and food retail sectors, with customers such as McDonald’s, Adidas and Lidl. It develops and produces hardware solutions for self-administration applications during the checkout process at the point of sale. The company’s digital kiosk technology enables end-customers to complete orders independently using touch screens. Management expects revenues of €55m in 2020 and EBIT of €4.0m, with significant increases in both revenues and operating result subsequently.
Details of transaction
The purchase price is €44m and will be paid in two steps in cash (€20m) and mic shares in kind. First, 52% of Pyramid shares for €20m in cash and 2.2m mic shares to the owners of Pyramid. The cash will come from an ongoing rights issue (aimed at raising €6.7m, subject to sufficient investor demand), debt of €5m and a second cash capital increase of €10.9m in Q221 (assuming a mic share price of €3.00–3.50). Second, 48% of the remaining Pyramid shares will be paid by the issue of mic shares to the owners of Pyramid. After completion of the transaction, the number of shares outstanding is projected to be 18.9m (subject to market conditions) and the shareholders of Pyramid and future management will hold 47.2% of mic. mic plans to divest its current holdings, Securize and Smarteag, and management expects proceeds of €2.5–3.0m over the next 12–18 months.
High growth potential at relatively low valuation
The global market for digital kiosk solutions at the point of sale is expected to grow >10% per year on average over the next five to seven years, according to expectations of market researchers such as Mordor Intelligence, Allied Market Research and Market Analysis. mic aims to outgrow the market by adding selective acquisitions and by entering new market segments. Alster Research issued a report about mic's transformation and its estimates are shown below. If the anticipated growth trends are met, the company’s valuation seems rather modest.
|
Consensus estimates
Source: mic, Alster Research. Note: *Valuation multiples adjusted for Pyramid acquisition, and Alster Research estimates of shares outstanding and net cash. |
|
||||||||||||
Edison Investment Research provides qualitative research coverage on companies in the Deutsche Börse Scale segment in accordance with section 36 subsection 3 of the General Terms and Conditions of Deutsche Börse AG for the Regulated Unofficial Market (Freiverkehr) on Frankfurter Wertpapierbörse (as of 1 March 2017). Two to three research reports will be produced per year. Research reports do not contain Edison analyst financial forecasts.
Research: Industrials
RADA Electronic Industries’ (RADA) strong third quarter results and upwardly revised outlook of at least $75m in revenues in 2020 (from $70m) reflect its successful execution of initial orders and participation in major US Army programs. This is illustrated by RADA’s inclusion in the $1.2bn contract recently awarded to General Dynamics for delivery of Interim Maneuver Short-Range Air Defense (IM-SHORAD) systems to the US Army. We increase our EPS forecasts by 37.5% in 2020 and 5.3% in 2021. The 2020–24 forecast EPS CAGR of 25.4% supports our DCF valuation of $10. The company also trades at a significant PEG discount to the peer group despite a higher growth rate.