Lyris Sold for $30M

Lyris, one of the leading vendors of email campaign management software--what you might also call mailing list management software--is to be bought by what appears to be an investment group, J.L. Halsey. Lyris is fetching a little under $30M. See http://tinyurl.com/co69t.

This strikes us as a reasonable price based on conventional valuation tools like price/earnings ratios, price/sales ratios, and discounted cash flows.

It also strikes us as a terrific deal for the investors, provided they understand what they have. Software that can manage distributions of very large numbers of emails, in a short time, is very special. It's worlds away from products like Exchange or Notes/Domino.

Lyris is arguably the leader in this field, or at least one of the dominant players. And it owns IP that is fundamental to communications. Nowadaways people commonly use email instead of phone. So for some large firms, this technology should be extremely valuable. A large firm, for example a very big media firm, should have ways of extracting far more value that might be generated by Lyris from its continuing profits. It should be a no-brainer, for example, to go to someone like Rupert Murdoch, or Microsoft, and suggest starting bids at $100M.

So a good way for J.L. Halsey, the non-operating firm that has purchased Lyris, to get a wonderful return on its investment, might be to turn around and sell its little gem to a much higher bidder.

2 Trackbacks

  1. By Sirana on May 12, 2005 at 1:11 PM

    Blogging and independence

    One of the issues that organizations will have to wrestle with now and over the next several years is how to handle bloggers that may have views that differ from their employer.

  2. By Sirana on May 12, 2005 at 1:17 PM

    JL Halsey acquisition of Lyris: Another View

    Note: This post was originally created for blogs.ferris.com My esteemed colleague (and boss) David Ferris just blogged about how great the purchase of Lyris by JL Halsey was, in terms of price, fit, etc.

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