When CEO & ED Craig Herbison resigned with immediate effect less than 2 weeks ago I said it "will be interesting to see who comes in and what they bring, not a great time to be a Plexure shareholder..."
Well, now (I think) I know why the timing of the CEO exit seemed a little sudden. I expect he was unhappy with the planned acquisition of TASK and the TASK CEO assuming the role of CEO for the combined entity, so was exited immediately (probably of benefit to both parties).
This is a huge acquisition for Plexure, and looks to be very complimentary on a number of fronts - reduces customer concentration, complementary products, cross sell opportunities.
There are a few concerns for me which has stopped me from adding to my position at this stage:
1) This almost doubles the market cap of Plexure, so there will be a lot to integrate with associated risks.
2) The new CEO Daniel Houden and his brother Dean (CTO) from TASK have no LinkedIn Profile and are an unknown quantity having only worked for this company (that their father started 20 years ago) since they left school.
3) There's no accounts provided for TASK, so I have no idea if the price paid is a good one or not for TASK.
4) Not sure if this is papering over some cracks for either company - only time will tell.
2 weeks can be a long time in small caps, it might actually be a great time to be a Plexure shareholder...
Disc: Held
