Climb Global Buys France's NeoVAD for $18M, Targets Earnings Accretion
CLMB has more than doubled off its 52-week low of $15.245.
Summary
Climb closed the acquisition of NeoVAD, a French value-added IT distributor focused on cybersecurity, cloud and virtualization, for about €16.0 million ($18.0 million). The target generated roughly €2.2 million ($2.5 million) of EBITDA in fiscal 2025, up 487% from about €378,000 the prior year, and brings ~300 active resellers plus vendor lines including Cato Networks, DataCore and Netwrix. Management expects the deal to be accretive to earnings and adjusted EBITDA, with NeoVAD's stronger margin profile supporting profitability. The price is modest next to Climb's roughly $585 million market cap, but it adds a profitable, fast-growing French platform on top of a Q2 where revenue rose 9% to $174.2M while net income fell 8% to $5.5M on expense growth. An 8-K is expected today with deal terms.
At the time of this announcement, CLMB was trading at $31.33 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $584.6M. The 52-week trading range was $15.25 to $34.14. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.