CoverAll Technologies (COVR)

[rrat02]

Deal has many moving parts. Think the easiest way to view it is that as a COVR shareholder would you rather have 16.5% of a company with $100+ million in revenue AND decent growth prospects or have 100% of a company with just over $20 million in revenue and extremely slow growth (struggling to win new customers)?

As far as valuation one can speculate as to what the P/S ratio of the new company will be. If the multiple is four (i.e. valuation of $400 million) then COVR shareholders will be at approx. $2.50 per share. GWRE has a P/S multiple of 9+..........

For what it's worth Wall St. loves a pure play story that is highly acquisitive. From what I gather that seems to be the plan.