QuinStreet Acquires Siren Group for $115M
QuinStreet announced that it entered into a definitive agreement to acquire Siren Group AG d/b/a as HomeBuddy. QuinStreet will integrate HomeBuddy into its Modernize Home Services business. Under the terms of the share purchase agreement, QuinStreet will acquire HomeBuddy for $115M in cash at closing and $75M in post-closing payments payable equally over four years, subject to certain closing adjustments. QuinStreet expects to finance a portion of the closing payment through borrowings under a new credit facility expected to be established on or prior to the closing of the transaction. The transaction is subject to the satisfaction of customary closing conditions, including regulatory approval, and is expected to close in early 2026. For the twelve months ended September 30, HomeBuddy generated approximately $141M in revenue. QuinStreet believes the acquisition of HomeBuddy would have been accretive to QuinStreet's revenue and adjusted EBITDA for the same period. QuinStreet expects the acquisition will be accretive to its adjusted EBITDA and EPS, adding an expected $30M or more of adjusted EBITDA in the first twelve months following closing of the transaction, with significant expected growth from there as significant and already identified synergies of the transaction are implemented.
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Three Delivery Service Stocks to Monitor as the Industry Faces Challenges
Industry Overview: The Zacks Internet - Delivery Services industry includes companies providing various online services such as food delivery, travel booking, and web hosting, with many facing challenges in profitability due to high R&D and marketing costs.
Growth Drivers: Increased smartphone usage and internet penetration are driving growth in the industry, while shifting consumer preferences towards online services and technological innovations enhance customer experiences.
Economic Risks: The industry faces potential risks from tariff wars affecting small businesses and advertising spending, alongside higher upfront costs for expansion that could impact profitability amid intense competition from major tech companies.
Performance and Outlook: The industry has underperformed compared to the S&P 500 and the broader tech sector, with a Zacks Industry Rank indicating poor near-term prospects and a negative earnings outlook for constituent companies.
MakeMyTrip (MMYT) Shares Rise 5.2%: Is Further Growth Ahead?
Stock Performance: MakeMyTrip (MMYT) shares rose 5.2% to $82.6, driven by increased trading volume and a 3.2% gain over the past month, reflecting optimism in the travel sector despite seasonal disruptions.
Earnings Expectations: The company is projected to report quarterly earnings of $0.43 per share, a 10.3% increase year-over-year, with revenues expected to reach $313.62 million, up 17.3% from the previous year.
Earnings Estimate Trends: The consensus EPS estimate for MMYT has remained stable over the last 30 days, indicating that stock price movements may be influenced by future earnings estimate revisions.
Industry Comparison: QuinStreet (QNST), another company in the same industry, has also maintained its EPS estimate at $0.21, with a Zacks Rank of #3 (Hold), highlighting a similar market sentiment.
