Stonegate Capital Partners Updates Coverage on Electro Optics Systems Holdings Ltd EOS 3Q 2024
DALLAS, TX -- November 22nd, 2024-- Electro Optics Systems Holdings Ltd EOS: Stonegate Capital Partners updates their coverage on Electro Optics Systems Holdings Ltd EOS. In November of 2024 EOS announced the signing of a binding agreement to divest the Company's EM Solutions segment for an enterprise value of $144.0M to Cohort, a UK based company. We note that this transaction triggers the repayment of its current debt facility. We estimate that following the closing of this transaction, which is expected to be completed within the next six months, the Company will have ~$135.0M in cash on the balance sheet and zero debt outstanding. We view this transaction as accretive to the Company's gross margin and expect that it will provide EOS with sufficient liquidity to pursue growth objectives closer to the Company's core operations.
To view the full announcement, including downloadable images, bios, and more, click here.
Key Takeaways:
- In November, EOS announced a binding agreement to divest its EM Solutions segment for $144.0M.
- Divestiture is expected to add ~$80M in the Company's cash balance.
- Post-divestiture, EOS will have zero debt outstanding.
Click image above to view full announcement.
Contacts:
Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com
Source: Stonegate, Inc.
Distributed by: Reportable, Inc.
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