Wednesday, August 23, 2006

Hit #110

Zomax (ZOMX) is being acquired by San Francisco-based private equity firm The Comvest Group in an all cash deal valuing the company at $130 million. The offer, of around $2.09/share is a discount of 56% to my average cost of around $4.74/share.

While I definitely would have liked to see a better takeover price, I will happily take this one as any hopes of a turnaround/recovery were fast fading. I was expecting the buyer to come from the same space, not a private equity group. A group that is buying Zomax is likely to go after other, larger targets in this sector. Who will they be ?

Previous hit - McData (#109)


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