A new acquisition by Mediagrif (TSX:MDF) has Laurentian Bank Securities analyst Nick Agostino feeling good about the company’s prospects going forward.
Yesterday, Mediagrif announced it will acquire a company called Orckestra Inc., which it described as “Orckestra Inc., a leading Canadian-based provider of digital unified and omnichannel commerce solutions for the retail and manufacturing industry”.
“We are happy to welcome and unite the Orckestra team within Mediagrif. This acquisition represents a unique opportunity for Mediagrif to gain footprint in the rapidly growing digital retail sector,” said Mediagrif CEO Claude Roy.
Abernethy describes Orckestra as a “A “Shopify lite” acquisition with some potential” and says the pickup will likely complement Mediagrif’s InterTrade platform.
“In keeping with MDF’s strategy to target tuck-in transactions for MERX and InterTrade, we view Orckestra as offering potential cross selling capabilities with MDF’s EDI InterTrade platform that targets similar retail and manufacturing industries,” the analyst says. “Existing InterTrade clients include Neiman Marcus, McKesson, Uni-Select, Dillard’s, and Kohl’s. Orckestra has offices in Montreal and Copenhagen, and services customers in North America and Europe.”
In a research update to clients today, Abernethy maintained his “Buy” rating and one-year price target of $20.00 on Mediagrif.