Comments on: Seagate Acquires MetaLINCS For $80 million http://www.clearwellsystems.com/e-discovery-blog/2007/12/11/seagate-acquires-metalincs-for-80-million/ thoughts about the evolution of e-discovery Fri, 12 Feb 2010 19:00:42 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: Michael Potters http://www.clearwellsystems.com/e-discovery-blog/2007/12/11/seagate-acquires-metalincs-for-80-million/comment-page-1/#comment-34 Michael Potters Mon, 17 Dec 2007 16:16:00 +0000 http://staging.clearwellsystems.com/wordpress/?p=36#comment-34 I know the MetaLINCS folks well, we were retained by Ramon to place some key personnel before the acqusition. To a person they are all quite pleased with the deal.<br/><br/>More important though is what is this book about the LA Geographer?<br/><br/>I am a geography freak and Antique map collector , so this all intrigues me even more than the MetaLINCS deal.<br/><br/>Feel free to contact me directly to talk cartography or business.<br/><br/>All the best!<br/><br/>mp<br/><br/><br/>Michael Potters <br/>CEO/Managing Partner<br/>The Glenmont Group<br/>www.glenmontgroup.com<br/>michael.potters@glenmontgroup.com I know the MetaLINCS folks well, we were retained by Ramon to place some key personnel before the acqusition. To a person they are all quite pleased with the deal.

More important though is what is this book about the LA Geographer?

I am a geography freak and Antique map collector , so this all intrigues me even more than the MetaLINCS deal.

Feel free to contact me directly to talk cartography or business.

All the best!

mp

Michael Potters
CEO/Managing Partner
The Glenmont Group
http://www.glenmontgroup.com
michael.potters@glenmontgroup.com

]]> By: Aaref Hilaly http://www.clearwellsystems.com/e-discovery-blog/2007/12/11/seagate-acquires-metalincs-for-80-million/comment-page-1/#comment-33 Aaref Hilaly Tue, 11 Dec 2007 22:12:00 +0000 http://staging.clearwellsystems.com/wordpress/?p=36#comment-33 David,<br/><br/>There are a couple of different rules-of-thumb for valuing companies: <br/><br/>1. Revenue multiples: Seagate paid 8-16X current year revenue; <br/><br/>2. Comparable transactions: Is MetaLINCS worth 50% of Stratify or 20% of ZANTAZ? <br/><br/>Any way you look at it, MetaLINCS got a great price and I am sure their shareholders are very happy. Companies commanding the kind of prices you quote (e.g., $300m) would have to be a market leader, which MetaLINCS is not. <br/><br/>Glad you enjoyed the book, hope we cross paths again soon. <br/><br/>All the best,<br/>Aaref David,

There are a couple of different rules-of-thumb for valuing companies:

1. Revenue multiples: Seagate paid 8-16X current year revenue;

2. Comparable transactions: Is MetaLINCS worth 50% of Stratify or 20% of ZANTAZ?

Any way you look at it, MetaLINCS got a great price and I am sure their shareholders are very happy. Companies commanding the kind of prices you quote (e.g., $300m) would have to be a market leader, which MetaLINCS is not.

Glad you enjoyed the book, hope we cross paths again soon.

All the best,
Aaref

]]> By: David Ferris http://www.clearwellsystems.com/e-discovery-blog/2007/12/11/seagate-acquires-metalincs-for-80-million/comment-page-1/#comment-32 David Ferris Tue, 11 Dec 2007 21:47:00 +0000 http://staging.clearwellsystems.com/wordpress/?p=36#comment-32 Hi Aarif,<br/><br/>Regarding valuation, I think Seagate may have got a good deal. Based on rough rule of thumb: Firm that has established itself with good technology in the early stages of an important new market, fetches between $75 million and $300 million.<br/><br/>Were I on the MetaLINCS end, I would have thought there are reasonable arguments for a lot more than $80M--assuming your $80M figure is correct.<br/><br/>More details on the argument at http://www.ferris.com/2007/12/11/terms-of-seagatemetalincs-transaction/.<br/><br/>BTW, thanks again for the nice nice, if rather pessimistic, book by that LA geographer. I enjoyed it a lot. Hi Aarif,

Regarding valuation, I think Seagate may have got a good deal. Based on rough rule of thumb: Firm that has established itself with good technology in the early stages of an important new market, fetches between $75 million and $300 million.

Were I on the MetaLINCS end, I would have thought there are reasonable arguments for a lot more than $80M–assuming your $80M figure is correct.

More details on the argument at http://www.ferris.com/2007/12/11/terms-of-seagatemetalincs-transaction/.

BTW, thanks again for the nice nice, if rather pessimistic, book by that LA geographer. I enjoyed it a lot.

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