What's next for Dye & Durham (DND) shareholders as it plans big move?

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What's next for Dye & Durham (DND) shareholders as it plans big move?

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ye & Durham Stock
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Highlights:
  • Dye & Durham's chief executive officer (CEO) Matthew Proud said that the deal is part of the company's 'Build to a Billion' strategy.
  • The Vancouver-based company is acquiring Australia-based Link Administration.
  • Dye & Durham is a cloud-based software provider for legal and business professionals.

The Vancouver-based software company Dye & Durham Limited (TSX:DND) announced acquisition of Link Administration Holdings Ltd. for C$ 3.2 billion.

This is a huge deal for the Canadian company as it is expanding its business operations through acquisition of a company that has operations in Australia.

Dye & Durham's chief executive officer (CEO) Matthew Proud said that the deal is part of the company's 'Build to a Billion' strategy. The software company wants to achieve C$ 1 billion of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).

What's next for Dye & Durham (TSX:DND) shareholders?

This year was not a joyous one for DND shareholders. In the last 12 months, the DND stock declined 11.6 per cent and fell about 18 per cent year-to-date (YTD).

However, it seems that things could change next year, as Dye & Durham is expected to quintuple its annual revenue base through Link Administration's acquisition.

Dye & Durham announced Link acquisition                                                                               © 2021 Kalkine Media®

Dye & Durham is a cloud-based software provider for legal and business professionals.

By acquiring this Australian company, Dye & Durham has an opportunity to become a key player in Australia's pension administration sector.

Also Read: 5 top Canadian tech stocks of 2021 under $50

Link Administration is reportedly the world's fourth-largest pension pool, and it has a critical mass across various product categories in Australia and the United Kingdom.

The DND stock could get investors' attention due to this deal and achieve new highs next year.

Bottom line

Dye & Durham's balance sheet could become solid due to this acquisition. Link had 1.2 billion Australian dollars in annual revenue during the recent fiscal year, whereas Dye & Durham generated C$ 208.9 million in fiscal 2021.

In Q1 2022, the Vancouver-based company's revenue was C$ 112.6 million, representing an increase of 414 per cent year-over-year (YoY).

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