Broadsoft (BSFT) Takeover Deal 'Seems Low', Other Bids Could Emerge - William Blair

William Blair analyst Dmitry Netis said the $55 takeover bid for Broadsoft (NASDAQ: BSFT) from Cisco (NASDAQ: CSCO) "seems low" and other strategic buyers could emerge.

"Our back-of-envelope math and DCF analysis pegged the fair value of BroadSoft between $60 and $70 per share, with PE interest setting a backstop at the lower end of this range," the analyst said.

Netis said if management had a choice between an all-cash deal with strategic at $55/share and a $60/share leveraged buyout, they could why Broadsoft chose Cisco. However, if another strategic buyer could emerge, it could spark a bidding war. They think Amazon (NASDAQ: AMZN) makes the most sense.

You May Also Be Interested In

• BMO Capital Downgrades Magna Intl (MG:CN) (MGA) to Market Perform
• RBC Capital Reiterates Sector Perform Rating on Freehold Royalties Ltd. (FRU:CN) (FRHLF)
• California Resources (CRC) PT Lowered to $91 at Stephens