Hi everyone,http://finance.yahoo.com/news/abb-acquire-power-one-become-0...ABB is buying Power-One for $6.35 a share in cash. The deal is expected to close in the second half of the year.The $1.028 billion price tag is not quite 3.9-times enterprise value and is only roughly 17-times trailing free cash flow. It's not even 8-times EBITDA.It's a good fit for ABB, which I knew was getting into and expanding in the inverter space. And the other business line fits them, too. But it's a bad outcome for Power-One shareholders, especially with shares of the stock as high as $6.50 just a few months ago and topping $9 in mid 2011.The MUE port will eke out a small profit. Average cost basis is $6.19 per share and the selling price is $6.35, so I make $0.16 in gains.Of course, I had much higher hopes for this company and its stock, but it's not to be.Cheers,Jim
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar<