Tuesday, 3 April 2007

Brainhunter Comparative Acquired For $227M


Infor Global Solutions announced Monday that it plans to purchase Canadian online workforce management software vendor Workbrain Corp (TSX:WB) for approximately $227 million in cash.

Infor's offer represents a 25.6% premium over Workbrain's average share price on the Toronto Stock Exchange as of Friday.


Workbrain develops, markets, implements and supports software for workforce management in large organizations. This technology is similar to one aspect of Brainunter's multifaceted technology platform.

Workbrain was purchased for 1.99X it's current 12 month sales. This compares to Brainhunter, which is trading at just .21 X sales.

Workbrain is currently EBITDA negative - purchased at-58.57X current year EBITDA or 63.12X last year's EBITDA! GMP securities forecasts Workbrain will do $5.7 million in EBITDA for this fiscal year indicating that the offer is to pay 39.16X forward EBITDA.

Comparatively Brainhunter is currently trading at 8.8X the last four quarters EBITDA and 4.82X F07's forecast of $8.0 million.

We think this acquisition speaks strongly to the value in Brainhunter's stock today and investors should take note.