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Kyle Ferguson
Kyle Ferguson
Articles (522)  | Author's Website |

Paul Singer Purchases Stake in Qlik Technologies

Company has increased its revenues and gross profit by 23% annually since December 2008

Paul Singer (Trades, Portfolio) purchased a 4,634,933-share stake in Qlik Technologies Inc. (NASDAQ:QLIK) during the first quarter.

Qlik Technologies is a user-driven business intelligence solution that enables its customers to make robust and faster business decisions. The Qlikview Business Discovery platform, or QlikView, helps people create and share insights and analysis in groups and across organizations. Business users can explore data, ask and answer their own stream of questions and follow their paths to insight on their own and in teams and groups.

The QlikView is powered by its in-memory engine that maintains associations in data and calculates aggregations as needed. The company operates in one business segment, the development, commercialization and implementation of software products and related services. It offers solutions from middle market customers to large enterprises such as Autodesk (NASDAQ:ADSK), The Dannon Company Inc., Heidelberger Druckmaschinen AG (XSWX:HDD), Hertz (NYSE:HTZ), ING, Kraft Foods (LTS:0R3B), L'Oreal, Lifetime Brands (NASDAQ:LCUT), Lockton Insurance, National Health Service, Panasonic (TSE:6752), Qualcomm (NASDAQ:QCOM), Sony Europe, Symantec (SYMC), U.S. Department of Veterans Affairs and Volvo Car U.K. Limited.

Qlik Technologies was acquired by Thoma Bravo, a successful private equity firm, on June 2. The transaction was reported to have been for approximately $3 billion where the purchase price represents 40% premium to unaffected stock price. Under the terms of the agreement, Qlik shareholders will receive $30.50 in cash for each share of Qlik common stock they hold. This price represents a premium of 40% to the company’s unaffected 10-day average stock price prior to March 3 of $21.83 according to the Thoma Bravo company website.

Qlik Technologies has a market cap of $2.83 billion, an enterprise value of $2.46 billion and a P/B ratio of 7.98.

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It is noteworthy that QlikView is also going through an investigation that is being conducted by Johnson & Weaver, a shareholders' rights law firm. The investigation is being conducted to determine whether the proposed deal price represents adequate consideration. You can read the full story by clicking here.

Singer may have decided to purchase a stake of Qlik Technologies for the following reasons:

  • The company has increased its revenue by an average of 23% annually since its December 2008 reported results.
  • The company reported gross profit of $104 million in December 2008. It reported $538.3 million in gross profit over the previous trailing 12 months. The company's gross profit has increased by an average of 22.8% annually since December 2008.
  • The company has a 9/10 financial rating according to GuruFocus with no debt.
  • The company has established approximately 38,000 active customers according to its most recent 10-K filing as of Dec. 31, 2015.
  • Qlik Technologies has increased its free cash flow growth by 24.90% over the previous 12 months. It also currently holds $88.9 million net change in cash according to GuruFocus which is a good sign.
  • The company has been able to expand its operations globally with 23 years of experience in its industry.

Below is a Peter Lynch Chart for Qlik Technologies.

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Singer is a New Jersey native who grew up in a family with two siblings. He received a B.S. in psychology from the University of Rochester in 1966 and a J.D. from Harvard Law School in 1969. Singer founded the hedge fund Elliott Management using his middle name. He founded the firm by raising $1.3 million from his friends and family. Elliott Management currently owns 61 stocks with a total value of $9.33 billion.

Cheers to your investment success.

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About the author:

Kyle Ferguson
Kyle Ferguson is an investor, author of The Christian Bubble, and he is a world-renowned human and animal rights activist, and the co-founder of The Light Movement. He is outspoken, fearless, and relentless. Kyle lives in Ontario, Canada and he is dedicated to making the world a better place with love and light.

Visit Kyle Ferguson's Website


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