Feeds

Lynx wants Tetra – why?

Tetra shares up, Lynx shares down

  • alert
  • submit to reddit

Top three mobile application threats

Lynx Group PLC has been smoked out as the suitor for Tetra, the veteran accountancy software vendor. The ambitious computer services conglomerate says it is "in continuing discussions" with Tetra, concerning a possible all share offer for the company. Lynx already knows the Tetra well. In 1997, the company stumped up £10 million for Apex, the UK's biggest reseller for Tetra and SAP software. Richard Holway, the leading software industry analyst, said the two companies "seem an excellent fit". The Financial Times quotes unnamed analysts who say the deal would offer "considerable synergies between the two companies". But synergies for whom? Lynx's current business activities don't look particularly synergistic: they include relatively low margin computer training and distribution of Unix hardware and software, as well as line of business applications in the financial, commercial, automotive and communications sectors. A deal with Tetra would make more sense if Lynx reversed its business systems business into Tetra and injected some more capital into the company. That way, punters could get to reap the benefits of Tetra C3, through a pure play software company. Great things are predicted for C3, Tetra's new flagship client-server product. Tetra is also profitable, after declaring a small loss last time out. But money is tight, with restrictions placed on head count, and disappointing levels of investment in getting C3 out to market, according to resellers. Backed by strong paper, Lynx would have little trouble in digesting Tetra -- financially speaking. Tetra is relatively big compared with recent Lynx acquisitions, but it is still only a sixth of the size of Lynx, a £180 million t/o company. Tetra announced the takeover approach from an unnamed company on 1 February. The shares jumped 56p on the day to 243.5p. Shares were off one pence at 278.5p yesterday, valuing the company at £69.8 million when Lynx's name was revealed as its suitor. Lynx shares fell 6p on the day to 209p, giving it a market cap of £223 million. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.