Sonata in talks to buy healthcare portal - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Sonata in talks to buy healthcare portal

Feb 25, 2000

Sonata Software is in negotiations to acquire the US-based Health Systems Designs, which operates a healthcare portal. The company trades in products for Microsoft, Oracle, SCO, Lotus, IBM and Computer Associates apart from earning revenues from software services, ERP business solutions around Scala. Sonata’s software services range from maintenance, migration, conversion, re–engineering services to full scale cycle software development, e–commerce applications and ERP customisation projects.

The acquisition of a portal would in a way signify a forward integration since the company is into the designing of portals too.

However, the fact remains that the valuation at which the company acquires the portal (given the high valuations that dot.com companies command) is a critical factor in the future. (The newspaper reports put the valuation at $ 50 million i.e. Rs 2 bn.) Besides, how the company funds the acquisition (whether through a stock swap or in cash) is also likely to be equally critical.

Another fact to bear in mind that analysts the world over are getting restless at the continuing losses of the dot.com companies and one is, at present, not aware of the business model of the portal as well as its sustainability.

Market View:
The stock has had an impressive run up over the last twelve months in line with the rally in software stocks and market analysts have rated it as a ‘hold’ over concerns for a possible downward re–rating for the sector as a whole.


Equitymaster requests your view! Post a comment on "Sonata in talks to buy healthcare portal". Click here!

  

More Views on News

SONATA SOFTWARE Announces Quarterly Results (3QFY20); Net Profit Up 18.7% (Quarterly Result Update)

Jan 27, 2020 | Updated on Jan 27, 2020

For the quarter ended December 2019, SONATA SOFTWARE has posted a net profit of Rs 759 m (up 18.7% YoY). Sales on the other hand came in at Rs 12 bn (up 46.6% YoY). Read on for a complete analysis of SONATA SOFTWARE's quarterly results.

SONATA SOFTWARE Announces Quarterly Results (2QFY20); Net Profit Up 16.2% (Quarterly Result Update)

Nov 5, 2019 | Updated on Nov 5, 2019

For the quarter ended September 2019, SONATA SOFTWARE has posted a net profit of Rs 722 m (up 16.2% YoY). Sales on the other hand came in at Rs 7 bn (up 18.5% YoY). Read on for a complete analysis of SONATA SOFTWARE's quarterly results.

SONATA SOFTWARE 2018-19 Annual Report Analysis (Annual Result Update)

Jul 18, 2019 | Updated on Jul 18, 2019

Here's an analysis of the annual report of SONATA SOFTWARE for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of SONATA SOFTWARE. Also includes updates on the valuation of SONATA SOFTWARE.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

SONATA SOFTWARE SHARE PRICE


Sep 23, 2020 09:11 AM

TRACK SONATA SOFTWARE

  • Track your investment in SONATA SOFTWARE with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MORE ON SONATA SOFTWARE

SONATA SOFTWARE - IBM COMPARISON

COMPARE SONATA SOFTWARE WITH

MARKET STATS