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Sep 4, 2015 · The company anticipates the acquisition to be accretive to earnings and cash flow within the first year after closing. ... I believe the number is almost 20% EMM for BlackBerry with the Good ...
However, we believe BlackBerry is a different scenario in the sense that the company is using cash to make its acquisitions instead of taking on debt or issuing equity to make these business moves.
- Accretion
- Dilution
- Breakeven
- Consensus EPS
- Level of Accretion Dilution as A Critical Issue
- Learn More
An accretive acquisition or merger is one where the pro forma (post-deal) Earnings per Share is greater than the acquirer’s (buyer’s) EPS before the deal is made. Pro Forma (Post-Deal) EPS > Acquirer’s EPS
A dilutive acquisition or merger is one where the pro forma (post-deal) EPS is less than the EPS of the acquiring business when it stands alone before the deal is made. Pro Forma (Post-Deal) EPS < Acquirer’s EPS
This scenario is pretty self-explanatory. Upon a merger or acquisition, the acquiring (buying) company would essentially “breakeven.” In other words, there would be no impact on the acquirer’s EPS, and the company’s EPS would be the same before and after the deal is made. Pro Forma (Post-Deal) EPS = No Impact on Acquirer’s EPS
The impact (accretion/dilution) of a merger or acquisition is generally based upon consensus earnings per share. Most public companies have analysts who follow the company and publish their estimates for EPS, and they should be used as a base for calculations. One really great tool for estimations of a company earnings is Thomson Reuters I/B/E/S. T...
As Accretion and Dilution Analysis is a simple test used to determine whether the proposed merger or acquisition will increase or decrease the post-transaction earnings per share (EPS), it is vital in determining whether a company should make the leap. The test determines if the transaction is affordable for the acquirer and what synergy they may b...
Thank you for reading CFI’s guide to Accretion Dilution. You can learn more by checking out the following free CFI resources: 1. Asset Acquisition 2. Stock Acquisition 3. Asset vs. Stock Deal 4. Section 368 5. Retained Earnings 6. See all valuation resources
Nov 2, 2015 · BlackBerry anticipates the acquisition to be accretive to earnings and cash flow within the first year after closing. BlackBerry also expects to realize approximately $160 million in GAAP revenue ...
Sep 4, 2015 · BlackBerry is looking to further boost its enterprise expertise with an all-cash acquisition of US firm Good Technology for $425 million. Mobile security provider Good will complement BlackBerry’s existing capabilities, at least that’s the hope of the struggling Canadian vendor for whom this is a significant outlay.
Nov 2, 2015 · John Chen, BlackBerry Executive Chairman and CEO, commented on the purchase completion: "The Good and BlackBerry solutions are very complementary. Combined, BlackBerry solves one of the biggest challenges for CIOs – to securely manage all types of deployment models for any device operating system platform, whether on-premise or in the cloud.
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Nov 2, 2015 · BlackBerry Limited , a global leader in secure mobile communications, today announced it has completed the acquisition of Good Technology. BlackBerry will integrate Good's software solutions and...
