Announcement • Jan 30
ESI Group SA Ordinary Shares to Be Deleted from OTC Equity ESI Group SA Ordinary Shares (France) will be deleted from OTC Equity effective January 30, 2024, due to Acquisition /Merger /Amalgamation. Announcement • Nov 05
Keysight Technologies, Inc. (NYSE:KEYS) completed the acquisition of 50.6% stake in ESI Group SA (ENXTPA:ESI) from group of shareholders. Keysight Technologies, Inc. (NYSE:KEYS) made a binding offer to acquire 50.6% stake in ESI Group SA (ENXTPA:ESI) from group of shareholders for approximately €480 million on June 28, 2023. As of September 22, 2023, Keysight Technologies, Inc. (NYSE:KEYS) signed a definitive agreement to acquire 50.6% stake in ESI Group SA (ENXTPA:ESI) from group of shareholders. The offer per share is €155. Keysight will finance the transaction from a combination of cash and cash equivalents on its balance sheet. For the purposes of the Offer, the board of directors of ESI Group established an ad hoc committee, comprising Alex Davern, Cristel de Rouvray, Yves de Balmann and Patrice Soudan. Transaction is subject to the signing of definitive agreements, and regulatory approvals. As of September 22, 2023, the transaction is expected to be completed in the fourth quarter of 2023, subject to obtaining the necessary regulatory approvals. This would be followed by the filing of the tender offer. J.P. Morgan Securities LLC acted as a financial advisor, Paul Hastings LLP acted as a legal advisor to Keysight. McDermott Will & Emery LLP acted as a legal advisor, Rothschild & Co SCA (ENXTPA:ROTH), and Evercore Group L.L.C. acted as financial advisors to ESI Group. King & Spalding International LLP is acting as a legal advisor to Amy-Sheldon Loriot de Rouvray, Cristel Loriot de Rouvray, John Alexandre Loriot de Rouvray, and Amy Louise Loriot de Rouvray.Keysight Technologies, Inc. (NYSE:KEYS) completed the acquisition of 50.6% stake in ESI Group SA (ENXTPA:ESI) from group of shareholders on November 3, 2023. As a part of closing, Keysight Technologies also confirms its intention to proceed with the filing of a mandatory tender offer (« offre publique d’achat ») for all remaining outstanding shares of ESI Group, at a price of 155 euros per share (the offer) in the coming days. J.P. Morgan SE and BNP Paribas are acting as presenting banks on the Offer, with BNP Paribas acting as guaranteeing bank. Announcement • Jun 29
ESI Group to Be Delisted from Euronext Paris, Upon Completion of Offer Keysight Technologies Inc. (Keysight) and ESI Group SA announced that Keysight has made a binding offer to certain shareholders of ESI Group to acquire a controlling block of ESI Group’s share capital, representing in aggregate 50.6% of the share capital and 55.8% of the theoretical voting rights of ESI Group, at a price per share of €155 in cash, and in return for entering into exclusivity. Under Keysight’s binding offer, the block acquisition, once completed, would be followed by the filing by Keysight of a proposed mandatory tender offer for the remaining shares of ESI Group outstanding at the time and, if the legal conditions are met at the end of the offer, a squeeze-out procedure and the delisting of ESI Group from Euronext Paris. Announcement • May 19
ESI Group Confirms Sale Talks ESI Group SA (ENXTPA:ESI) on May 18, 2023 confirmed it is holding initial discussions with certain third parties regarding a possible acquisition of the company. The talks followed the receipt of indicative non-binding proposals. Further details were not provided. The company’s statement comes after a Bloomberg report saying that ESI has tapped advisers to consider a sale amid takeover interest from suitors including larger rival Dassault Systèmes SE (ENXTPA:DSY), as well as from private equity firms TA Associates Management, L.P. and Francisco Partners Management, L.P. Shares in ESI soared on the news, trading 20.58% higher at EUR 116 as of 15:38 CET in Paris on May 18, 2023. Its market capitalization tops EUR 703.4 million (USD 758.5 million). Valuation Update With 7 Day Price Move • May 18
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to €101, the stock trades at a forward P/E ratio of 41x. Average forward P/E is 28x in the Software industry in France. Total returns to shareholders of 232% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €76.45 per share. Reported Earnings • Mar 20
Full year 2022 earnings released: EPS: €2.69 (vs €3.24 loss in FY 2021) Full year 2022 results: EPS: €2.69 (up from €3.24 loss in FY 2021). Revenue: €133.9m (down 2.0% from FY 2021). Net income: €15.4m (up €33.9m from FY 2021). Profit margin: 12% (up from net loss in FY 2021). The move to profitability was driven by lower expenses. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Software industry in France. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Price Target Changed • Mar 02
Price target increased by 9.8% to €82.00 Up from €74.67, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of €79.00. Stock is up 5.6% over the past year. The company is forecast to post earnings per share of €2.29 next year compared to a net loss per share of €3.24 last year. Reported Earnings • Sep 13
First half 2022 earnings released: EPS: €4.87 (vs €0 in 1H 2021) First half 2022 results: EPS: €4.87 (up from €0 in 1H 2021). Revenue: €84.3m (up 3.0% from 1H 2021). Net income: €13.9m (up 26% from 1H 2021). Profit margin: 17% (up from 14% in 1H 2021). Revenue is forecast to grow 5.3% p.a. on average during the next 4 years, compared to a 9.8% growth forecast for the Software industry in France. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Price Target Changed • May 04
Price target increased to €78.33 Up from €71.67, the current price target is an average from 3 analysts. New target price is 15% above last closing price of €68.20. Stock is up 20% over the past year. The company is forecast to post earnings per share of €1.48 next year compared to a net loss per share of €3.24 last year. Reported Earnings • Apr 14
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: €3.24 loss per share (down from €0.25 profit in FY 2020). Revenue: €136.6m (up 3.0% from FY 2020). Net loss: €18.5m (down €19.9m from profit in FY 2020). Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) were also behind analyst expectations. Over the next year, revenue is forecast to grow 6.6%, compared to a 11% growth forecast for the industry in France. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has increased by 29% per year, which means it is well ahead of earnings. Major Estimate Revision • Mar 06
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from €147.6m to €145.6m. EPS estimate rose from €1.22 to €1.61. Net income forecast to grow 101% next year vs 20% growth forecast for Software industry in France. Consensus price target up from €71.67 to €75.00. Share price rose 2.8% to €72.40 over the past week. Reported Earnings • Apr 17
Full year 2020 earnings released: EPS €0.25 (vs €4.43 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: €132.6m (up 19% from FY 2019). Net income: €1.41m (up €24.3m from FY 2019). Profit margin: 1.1% (up from net loss in FY 2019). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Price Target Changed • Mar 18
Price target increased to €43.75 Up from €40.50, the current price target is an average from 3 analysts. New target price is 12% below last closing price of €49.90. Stock is up 49% over the past year. Is New 90 Day High Low • Feb 12
New 90-day high: €50.00 The company is up 19% from its price of €42.10 on 13 November 2020. The French market is up 7.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Software industry, which is up 26% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €51.77 per share. Is New 90 Day High Low • Jan 15
New 90-day high: €47.10 The company is up 24% from its price of €38.00 on 16 October 2020. The French market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €44.47 per share. Price Target Changed • Jan 04
Price target raised to €38.75 Up from €35.25, the current price target is an average from 3 analysts. The new target price is 17% below the current share price of €46.50. As of last close, the stock is up 50% over the past year. Is New 90 Day High Low • Dec 17
New 90-day high: €43.20 The company is up 13% from its price of €38.30 on 18 September 2020. The French market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 2.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €23.35 per share. Is New 90 Day High Low • Nov 09
New 90-day high: €40.80 The company is up 9.0% from its price of €37.50 on 11 August 2020. The French market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €34.88 per share.