Update 1st July 2021:
Crayon (Norway listed Group) makes A$2.50/Share nonbinding takeover proposal.
Rhipe allows Crayon to undertake "limited due diligence" on "NONEXCLUSIVE" basis.
I think $2.50 is just about fair value. If I was a private owner of Rhipe, I wouldn't want to sell it anything less than $3 ( premium to my intrinsic value) knowing the industry it operates, the tailwind behind it and all the investments companies made in Japan, and the Security business recently,
Update 4th June 2021:
Rhipe adds AvePoint in their vendor list.
In 2021 following vendors have been added ( As per point 4 below - Management is executing )
AvePoint, Zoom, Access4, Runecast, Octopus Cloud and Nerdio.
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Update 1st April 2021:
More on point 5 ( from below), Rhipe announced Cyber Security distribution specialist EMT Tech distribution.
https://www.rhipe.com/rhipe-acquires-cyber-security-distribution-specialist-emt-distribution/
It seems to match with point 3. and Rhipe will be able to expand its foot further into the growing cyber security sector.
So Rhipe essentially distributing Saas businesses for Cloud and cybersecurity sectors - there is definitely tailwind for both of them.
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Update 24th march 2021:
More on point 4 ( from below) , one example what management said they will do and what they are doing is consistent.
https://www.rhipe.com/rhipe-adds-video-communications-provider-zoom-to-its-vendor-portfolio/
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1H FY21 Results is out. It shows the resilience nature of the business. Even in a difficult environment, it managed to grow ~20%.
Management has invested smartly all the cash business has generated, Shareholders will reap the rewards for it in later years. Few things that I believe will keep growth going
1) Investment in Japan ( Bigger market than existing ones)
2) Professional solution Service business is growing - They have leased new bigger office in Manali to accommodate growing head count.
3) New internally built SmartEncrypt product launch - High margin and makes customer sticky as it is exclusive - Give Rhipe to expand beyond the existing area, where they have been given Vendor distribution rights.
4) Number of new vendors are coming on-board. Management is trying to increase other vendors to de-risk a significant Microsoft portion of the business.
5) Holding a high-level of cash, appointed an external consultant for M&A activity, and Management is looking for a bigger acquisition this time around. ( This can be bad thing as well)
