Absolute Software Q3 Earnings Slip on Higher Revenue; Raises FY21 Outlook, Agrees to Buy NetMotion
05:12 PM EDT, 05/11/2021 (MT Newswires) -- Absolute Software (ABST) late Tuesday reported fiscal Q3 earnings of $0.04 per diluted share, down from $0.05 a year prior.
Revenue for the quarter ended March 31 climbed to $30.7 million from $26.1 million in the year-ago period.
For full-year fiscal 2021, the endpoint security and data risk management provider upped its revenue outlook to between $119 million and $120 million, from $117 million to $119 million previously.
In a separate release, Absolute said it will acquire privately held connectivity and security services provider NetMotion Software for $340 million in cash to bolster endpoint resilience for clients.
Revenue for the combined company is expected at about $176 million, while annual recurring revenue is forecast at $175 million.
Absolute expects to finance the deal with $65 million in cash from its balance sheet as well as $275 million in debt from investment management firm Benefit Street Partners LLC. The term loan is payable in six years with interest at an annual rate of LIBOR plus 6%, subject to certain conditions.
The acquisition, which is subject to customary closing conditions plus working capital adjustment post-closing, is set to close by the end of June, subject to certain regulatory approvals, the company said.
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