Boxlight Buys Audio-Visual Specialist Sahara For $94.9M

Boxlight announced the acquisition of UK-based Sahara Presentation Systems, a specialist in AV (audio visual) solutions for £74 million ($94.9 million) on Friday. Boxlight shares jumped about 14.5% on Friday, following the deal, but are down 3.6% in pre-market trading on Monday.

Per the terms of the deal, Boxlight (BOXL), an interactive technology solutions provider for the education market, will pay about $66.7 million in cash and the remaining $28.2 million in preferred stock to Sahara shareholders. The acquisition would include Sahara’s renowned brands Clevertouch and Sedao.

Boxlight’s CEO Michael Pope said “The Sahara acquisition expands our geographic reach – particularly in the EMEA [Europe, the Middle East and Africa] region, provides significant revenue growth, results in immediate consolidated profitability, and adds tremendous global management talent.” He added “The combined companies are generating greater than $100M in sales and are highly profitable.” (See BOXL stock analysis on TipRanks)

On Aug 17, Maxim Group analyst Jack Vander Aarde raised the price target on Boxlight stock to $4 (140.96% upside potential) from $2 and maintained a Buy rating on the shares. He believes that despite the COVID-19 headwinds, the company will benefit from the increased focus by school districts on digital education technologies for the upcoming school year. The analyst added that the company’s recent partnership with Samsung is likely to facilitate new sales channels, customers, and geographies over the medium term.

Currently, the Street has a bullish outlook on the stock with a Strong Buy analyst consensus. The average price target of $4.25 implies upside potential of about 156% to current levels- even though shares have already increased 49.6% year-to-date.

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