IS Solutions (LON:ISSL) has undergone a significant transformation into a data solutions business over the last year, having acquired the enterprise software company Celebrus Technologies for c £8.5m in early 2015. Trading has been buoyant, with a string of upgrades, driven by strong demand for the group’s analytics offerings, which now represent more than 70% of the business. Despite the recent outperformance, we believe the shares continue to look attractive on c 16x FY17e P/E, given the relationships with software vendors and the broadening growth prospects.
Specialists in data collection and analytics
Celebrus brings to ISL patented software solutions in omni-channel, real-time data collection, which have been endorsed by major technology providers including SAS and Teradata (NYSE:TDC). The software is used by companies (notably in the retail and financial services sectors) to analyse their customers’ interactions across multiple channels (both online and offline) for the purpose of increasing customer loyalty and boosting revenues. The market opportunity is substantial and growing apace, with business analytics software forecast to grow by 8% pa over 2015-19 (IDC), while the web analytics segment (which more closely represents ISL’s market) is forecast to grow by 18.9% pa over 2014-22 to reach a size of $5.12bn (Wise Guy Reports).
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