Excel acquires 70% of a small company – the capital market

Company

Excel
+ 6.5%

Base:267.7

opening:290

Tall:298

low:285.1

change:1,402,754

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Reports that it will acquire 70% of Danat Communications, a company that integrates, distributes and implements projects in the cyber and cloud fields, for NIS 3.5 million. In addition, the company was given an option to purchase about 10% of Cyber ​​Cloud (a company wholly owned by the founders of Danat Communications) for $ 6.12 per share, and in the amount of $ 700,000.

As part of the agreement, Danat Communications will increase the volume of the annual dividend to 50% of the total profits, and the company will aim to distribute a dividend in the next six months in the amount of at least NIS 2 million per year.

At the same time, Excel will allocate about 2 million shares to the founders of Dante, as well as a conditional consideration of 400,000 shares, subject to the company’s success.

In the last two years, Excel has flown 19 times to a market value of about NIS 290 million, but in the meantime the profit rate before entering the stock market and after it has not improved for the better despite expectations (for the full article). Days will tell whether these new moves will lead to a significant increase in profits that will justify the jump.

Danat earns about a million shekels a year
In 2018, Danat (before tax) lost NIS 650,000, in 2019 it made a profit (before tax) of NIS 930,000 and in the first nine months of 2020, the company earned (before tax) NIS 1.04 million.

The company’s revenue cycle has not changed much during these three years. In 2018, the company’s revenues were NIS 982,000, in 2019 revenues dropped to NIS 939,000 and in the initial nine months of 2020, the company’s revenues were NIS 983,000.

About a month ago, Excel won a tender for the supply of fiber routers in the amount of NIS 2.6 million.