Here are comments regarding the new acquisition, or should I say, an arrangement complementing the previous Sarastia deal:
With these Sarastia deals, Administer acquires approximately EUR 58 million in revenue, whose profitability (EBITDA margin 2.2%) is currently low. The valuation of the deal is very low, approximately 0.2x EV/S multiple. If the company succeeds in its goal of raising Sarastia’s profitability to a double-digit level, this would practically mean a tremendous leap in earnings relative to Administer’s current size (2025e revenue EUR 75 million and EBITDA EUR 6.3 million). There is thus plenty of potential for value creation, but naturally, stabilizing a business that has been on a downward trend is never an easy task, even though the company seems to have clear measures for it.