Last week, the market balked at SmartForce plc’s planned $220 million acquisition of SkillSoft Corp., pressing the target’s stock down 37% the trading session after the news. But to at least one equity analyst, SkillSoft needs the deal. “SkillSoft shareholders are upset about this, [but] from a pricing standpoint, SmartForce is clearly a larger company with a stronger, more longstanding presence,” noted Trace Urdan, an analyst with ThinkEquity Partners. The fact that SmartForce is not profitable is a temporary phenomenon caused by what turned out to be overly aggressive expansion, he said.
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