Earlier today, Dye & Durham (TSE:DND), a Toronto-based company known for its cloud-based legal practice management software, announced that it will be divesting one of its businesses, TM Group, to AURELIUS, an international alternative investment firm. As a result of the transaction, DND will pocket around £50 million in cash on closing, with the potential to make an additional £41 million in earn-out payments from 2023 to 2026. DND stock is up slightly on the news.
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Matthew Proud, Dye & Durham’s CEO, painted a positive picture of the deal. According to Proud, TM Group, while not a major player in DND’s overall business, stands to gain a new lease on life under AURELIUS’ ownership. Further, DND will use the proceeds to pay off some of its debt, and the company is planning on finding new M&A opportunities in the UK. The deal is expected to close in August.
Is Dye & Durham Stock a Buy, According to Analysts?
DND has a Moderate Buy consensus rating based on just one Buy rating assigned in the past three months. Dye & Durham stock’s price target of C$23.00 implies 25.65% upside potential from here.
