Global investment firm KKR & Co., Inc. (NYSE:KKR) announced that it has made a major investment in Alchemer. The financial terms of the deal have been kept under wraps.
The investment marks the first one for KKR Ascendant, a new strategy within KKR’s Americas Private Equity platform. The strategy primarily focuses on investing in high-quality, middle-market businesses and helping them grow, scale, and create value for their customers and employees using KKR’s leading platform and resources.
Benefits of the Deal
Founded in 2006, Alchemer provides an integrated feedback management platform that helps businesses collect, analyze, and leverage customer and employee feedback through various tools and software. This enables better engagement, retention, and user experiences for more than 13,000 global firms, including a large number of Fortune 500 companies.
The addition of Alchemer’s strong fundamentals, talented management team, and differentiated business model will enhance KKR’s experience in investing in the software sector globally and synchronises well with KKR’s recent investments that include Autodata, Calabrio, Cegid, Corel, Cloudera, Epicor, Exact, and OneStream, to name a few.
Furthermore, the investment is expected to accelerate Alchemer’s growth through marketing, product innovation, industry partnerships, and strategic M&As.
CEO’s Comments
Alchemer CEO, David Roberts, stated, “We believe this transaction will benefit our customers and employees by accelerating our investment in Experience Management.”
He further added, “KKR shares our vision for the CX industry’s role in translating customer feedback into action, and having access to KKR’s expertise, capital and resources will put Alchemer in an even better position to deliver on this critical mission.”
Wall Street’s Take
Earlier today, Deutsche Bank analyst Brian Bedell decreased the price target on KKR to $79 (55.63% upside potential) from $81 and reiterated a Buy rating on the shares.
Consensus among analysts is a Strong Buy based on eight Buys and two Holds. The average KKR price target of $78.35 implies upside potential of 55.15% from current levels.
TipRanks’ Smart Score
KKR scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Concluding Thoughts
Given the ongoing equity market decline, a number of buying opportunities are emerging for KKR across various spaces like brokers, asset management, and exchange sectors. Profitable investments at attractive valuations can aid in enhanced growth and profitability for KKR in the long run.
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