Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, September 9, 2022

Article Excerpt

KINAXIS INC., $142.40, symbol KXS on Toronto, provides cloud-based subscription software that big companies use to manage their supply chains. Kinaxis is based in Ottawa. The company’s shares began trading in June 2014 at $13 a share. Kinaxis’s main product is RapidResponse, which helps manage supply, demand, inventory, order fulfillment, and capacity planning. Its applications include matching production and inventory to demand, analyzing sales patterns, and forecasting. Subscribers pay a monthly or yearly fee for software implementation, support and upgrades; contracts are typically two to five years in length. That provides the company with a steady revenue stream rather than a series of larger one-time payments for the initial sale and upgrades. On August 22, 2022, Kinaxis announced the acquisition of Netherlands-based MPO for $45 million. The company paid for the cloud-based SaaS (software-as-a-service) platform with 75% cash and 25% in Kinaxis stock. The level of equity will depend on MPO hitting certain revenue goals over the near term. MPO’s SaaS platform connects various…

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