Citadel’s recent acquisition strategically sensible
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The Citadel Group (CGL), a recent IPO which we discussed in our last monthly review, was a standout performer in May, finishing up 46.8%. CGL is a company that specialises in enabling an organisation’s knowledge capital by integrating systems, people and processes to provide information on an “anywhere-anytime” basis. During the month, the company announced the transformational acquisition of PJA Solutions, a leading provider of managed technology services to the Australian health and pathology sectors. We forecast that this strategically sensible acquisition will increase the company’s EBITDA by more than 80% and will be EPS accretive in the order of 40% (assuming no synergies) in FY16. We rate the CGL management team highly and believe that the company’s pipeline of organic growth opportunities is solid.
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![OC Funds Management](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBcHNEIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--305741af11640ffd314fae310a733de9f08c5749/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/646d4b69d9760f7d3badafbf588c4c491392269985.png)
OC Funds Management (OC) is a boutique small cap specialist which was founded by its investment staff and non-executive directors. OC commenced operated in December 2000 with the launch of two long only small cap Australian equity funds, the OC...
Expertise
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![OC Funds Management](https://assets.livewiremarkets.com/rails/active_storage/representations/proxy/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBcHNEIiwiZXhwIjpudWxsLCJwdXIiOiJibG9iX2lkIn19--305741af11640ffd314fae310a733de9f08c5749/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaDdCem9MWm05eWJXRjBTU0lJY0c1bkJqb0dSVlE2RTNKbGMybDZaVjkwYjE5bWFXeHNXd2RwQWNocEFjZz0iLCJleHAiOm51bGwsInB1ciI6InZhcmlhdGlvbiJ9fQ==--c306068f01ab83c3650795f1865f4e6da1f93433/646d4b69d9760f7d3badafbf588c4c491392269985.png)
OC Funds Management (OC) is a boutique small cap specialist which was founded by its investment staff and non-executive directors. OC commenced operated in December 2000 with the launch of two long only small cap Australian equity funds, the OC...
Expertise
No areas of expertise