HAMDEN, Conn. - TransAct Technologies Incorporated (NASDAQ:TACT), known for its software-driven technology and printing solutions, is actively exploring strategic alternatives to enhance shareholder value, including the potential sale of the company or parts of it. The company has engaged Roth Capital Partners, LLC as its financial advisor to assist in the review process.
An independent committee has been formed by the Board of Directors to consider a full range of strategic, operational, and financial alternatives. Preliminary discussions with potential strategic partners have already taken place, indicating a proactive approach to the company's future amidst the changing market landscape.
TransAct's casino business segment continues to be a strong performer, with global growth prospects expected to contribute to stable and increasing returns as industry inventories stabilize. Despite losing the label business from 7-Eleven, the company's Food Service Technology (FST) segment is experiencing growth, having secured new customers and a significant order from a large global quick-service restaurant (QSR) client for its new BOHA! Terminal 2.
CEO John Dillon emphasized the company's dual focus on pursuing strategic initiatives and improving operational execution within each business area. TransAct's commitment to these initiatives is aimed at driving growth and efficiency in its operations.
The company's portfolio includes solutions for food service, casino and gaming, and point of sale (POS) automation, sold under various brands such as BOHA!™, AccuDate™, EPICENTRAL®, Epic, and Ithaca®. With over 3.9 million devices sold worldwide, TransAct remains dedicated to providing service and support for its installed product base.
This strategic review announcement is based on a press release statement.
InvestingPro Insights
As TransAct Technologies Incorporated (NASDAQ:TACT) evaluates its strategic options, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, TransAct's market capitalization stands at 35.48 million USD, reflecting the scale of the business in the eyes of the market. Despite a challenging period, the company maintains a relatively high price-to-earnings (P/E) ratio of 62.07, which indicates investor confidence in its future earnings potential. This confidence is further underscored by the company's strong free cash flow yield, as highlighted by one of the InvestingPro Tips.
However, investors should note that TransAct's revenue has declined by 13.66% over the last twelve months as of Q1 2024, suggesting that the company faces headwinds that may affect its sales performance in the current year—a concern also raised in another InvestingPro Tip. This contraction in revenue growth is also reflected in the significant downturn in the company's stock price, with a one-month total return of -31.47% and a six-month total return of -48.48% as of the same period.
For investors seeking a deeper analysis of TransAct's financial position and market trends, InvestingPro offers a more comprehensive set of InvestingPro Tips. There are additional tips available on the platform, providing valuable insights into various aspects of the company's performance and valuation. Interested readers can explore these insights and benefit from an exclusive offer: use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/TACT.
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