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  5. VHI: Seems they paid more than normal for an acquisition, roughly 4 times sales with no ebitda. [Vitalhub Corp.]
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Q: Seems they paid more than normal for an acquisition, roughly 4 times sales with no ebitda. Please give your opinion.
Asked by sandy on July 07, 2025
5i Research Answer:

The acquisition of Novari is on the expensive side, but investors seem comfortable. VHI hopes to see it as a 'strategic' deal, which will expand it expand globally. Margins and other data were not provided, so we can only assume VHI believes in the future prospects here. Novari will add about 15% to VHI's annual revenue, pushing it above $100M. VHI also has a premium multiple so can justify the deal that way. We think it looks OK and would give management the benefit of the doubt here.