Information technology and software engineering company CI&T (NYSE:CINT) recently revealed that it has acquired a UK-based digital product agency, Somo Global Ltd., for $67 million. The deal is likely to close in the first quarter of 2022.
Shares of the company reacted adversely to the news and declined almost 6% to close at $12.07 on Friday.
Under the terms of the deal, CI&T will pay up to 25% of the buyout amount in the form of Class A Common shares of CI&T, along with an earn-out clause of up to $13 million, subject to future performance.
Strategic Impact
Post the acquisition, Somo will become a part of CI&T’s Europe, Middle East and Africa(EMEA) operation.
Further, the buyout will enable CI&T to gain access to Somo’s digital capabilities and a wide range of clients spanning industries, including automotive, financial services, utilities and telecom.
CEO’s Comments
The CEO of CI&T, Cesar Gon, said, “Somo and CI&T have a similar culture – people first, innovation-driven and a strong reputation with global brands. Together we will be able to combine the power of a global company with the strength of a strong European player.”
Price Target
Consensus among analysts is a Strong Buy based on 6 unanimous Buys. The average CI&T stock prediction of $17.50 implies upside potential of 45% from current levels. Shares have declined 33.4% over the past year.
Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into CI&T’s performance this quarter.
According to the tool, the CI&T website recorded a 1.44% monthly fall in global visits in December, compared to the same period last year. However, year-to-date, the website traffic has grown 43.81%, compared to the previous year.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
Related News:
Delta Rises 2% on Upbeat Q4 Results, Warns of Q1 Loss
Taiwan Semiconductor Posts Q4 Beat & Robust Guidance; Shares Pop 5.3%
Cogeco Communications Q1 Revenue Rises 16%, Profit Flat
