By Jake King
Merge Healthcare Inc. (NASDAQ:MRGE) could be seeing the first round of corporate bids next week, according to dealReporter. Offers to buy the company, expected October 5th, could be coming from private equity firms, according to the report. Note that we estimate, based on an industry EV/forward sales multiple, that MRGE could be worth nearly $9.00 a share on fundamentals, and recently brokerage firm RW Baird & Co. stated that the stock could be worth $8.00 to a strategic bidder. See PropThinks prior report on MRGE by clicking here. Expect MRGE to strengthen based on recognition of the company’s discounted valuation, as well as the potential for a buyout.
In connection with MRGE, PropThink has taken a long position. Our full disclaimer is available at http://www.propthink.com/disclaimer.