Market Overview

VASCO Data's Latest Deal Is A Win For Investors

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  • Having plummeted from $28 to $20 in July, shares of VASCO Data Security International, Inc. (NASDAQ: VDSI) are down 30 percent in the last three months.
  • Singular Research’s Debra Fiakas maintained a Buy rating on the company, with a price target of $36.
  • The company’s latest acquisition deal is highly strategic, and has significant long-term potential, Fiakas mentioned.

VASCO Data has inked a deal to acquire Silanis Technology, Inc. VASCO has agreed to purchase the privately-held provider of electronic signature and digital transaction solutions for $85 million in cash and expects the transaction to close in late 2015 or early 2016.

Silanis markets eSignLive, an electronic signature solution, to various enterprise and government agencies. Silanis focuses on the regulated market where its customers need to comply with exacting signature protocols.

VASCO Data has projected incremental sales of about $20 million in FY16 from the Silanis acquisition. Analyst Debra Fiakas said that the Silanis deal seems “highly strategic,” while adding that it could take some time for investors to “absorb the implications” of this deal.

“The transaction lends strong support for long-term growth, but will trigger near-term operating losses. All in all we expect investors to look more favorably on VASCO’s long-term growth prospects, accelerating the nascent price recovery that began in late September 2015,” Fiakas explained.

Latest Ratings for VDSI

DateFirmActionFromTo
May 2018DowngradesOutperformIn-Line
Jun 2017Initiates Coverage OnOutperform
Dec 2016Initiates Coverage OnBuy

View More Analyst Ratings for VDSI
View the Latest Analyst Ratings

Posted-In: Debra Fiakas Singular Research VetrAnalyst Color Reiteration Analyst Ratings

 

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