Global IT solutions provider Unisys Corp. (UIS) has agreed to acquire Unify Square for a consideration of $152.5 million. The latter provides experience management for secure collaboration and communications platforms.
The acquisition, which is likely to close soon will help Unisys further advance its experience-focused digital workplace solutions with the help of Unify’s Unified Communications as a service (UCaaS) product offerings.
Peter Altabef, CEO of Unisys said, “The acquisition of Unify Square will enhance Unisys’s digital workplace services business to drive increased revenue growth and improved profitability cash flow.” (See Unisys stock analysis on TipRanks)
Altabef added, “The UCaaS market, in which Unify Square operates, is expected to be among the fastest-growing segments of the digital workplace services market.”
The addition of Unify is expected to be accretive to Unisys’ adjusted EBITDA margin and adjusted free cash flow by 2023 with minimal impact during the initial period.
Significantly, the integration of the digital workplace service offerings of the two companies will help customers improve results via an accelerated digital transformation, the ability to assess employee experience through real-time analytics, and cover platform security and lifecycle management scenarios.
Last month, Canaccord Genuity analyst Joseph Vafi reiterated a Hold rating on the stock and increased the price target to $25 (5.2% downside potential) from $24.
Vafi sees a multi-faceted growth opportunity for UIS, “driving continued organic growth in Cloud & Infrastructure while perhaps becoming an opportunistic buyer in Digital Workplace Services (DWS) as other competitors potentially de-emphasize this segment.”
Furthermore, the analyst believes that Unisys is closer to achieving “perhaps the most historic turnaround in the history of the IT services sector.”
Shares have gained about 34.1% so far this year.
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