FoggyIsle.XYZ | Market's view on Marlowe

Cavendish released a positive research note with a 12-month price target of 775p for the company, speculating a rerating post-debt resolution after a deal completion.
Speculations persist if previously interested parties would reconsider following increased multiples in related transactions.
Discussion surrounds the potential sale of the TIC division post divestment, highlighting a possible transaction within a year.
Marlowe advocated a strategic three-year plan aiming to significantly increase group revenues and adjusted EBITDA by 2024.
Instead of divesting the TIC division, Marlowe agreed to sell certain Governance, Risk & Compliance software and services assets to Inflexion Private Equity for £430m.
The sale excludes Compliance Services businesses in OH and TIC, which represent approximately 80% of Marlowe’s FY23 revenues.
Post-deal, Marlowe plans to retire its debt facility and return around £150m to shareholders.
Following the asset sale announcement, Marlowe’s share price experienced significant trading, peaking at 600p with notable volume before stabilising.
Discussions include the potential return of capital to shareholders funded by the sale, and speculation about additional divestitures of remaining business segments.
Financial analysis post-divestment reveals Marlowe retaining significant revenue and EBITDA, suggesting continued good value despite selling a major part of the business.
Queries were raised regarding tax implications on the net proceeds from the asset sale.
Marlowe’s CEO plans to transition with the divested business, prompting discussions on future leadership and strategic directions post-deal.
Surprisingly, Marlowe opted to sell GRC assets instead of the anticipated TIC segment, indicating strategic shifts in focus.