The acquisition of I-New transforms Cyan's (DE:CYR) scale and growth prospects still further. Recent interim results highlighted a business on track to exceed FY18 pro forma guidance of €20m and expand EBITDA margins significantly. With a largely recurring revenue base, orders with an annualised contract value (ACV) of over €6m already signed and a qualified pipeline of €100m in ACV, the company also appears well positioned to deliver FY19 revenue guidance of €35m (implying 75% y-o-y organic pro forma revenue growth).
I-New deal transforms Cyan
In our initiation note, we highlighted how Cyan’s IPO and acquisition of its operating subsidiary was set to transform its profile. The subsequent acquisition of I-New (€17m in July 2018) has accelerated the pace of that transition still further. Aside from providing a significant opportunity to accelerate Cyan’s push into the mobile virtual network operator (MVNO) market, it broadens the product portfolio, expands development and sales resources, and creates potential cost synergies.
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