Simulations Plus ( Nasdaq - SLP ) -- Acquisition Bid Falls Short

Simulations Plus (SLP $3.15) was outbid in its effort to purchase Entelos.  The target company provides simulation software that complements Simulations Plus's offerings.  Entelos ran into hard times over the past few years, though, and filed for bankruptcy.  Its principal creditor, a financial investor, decided to take control of Entelos rather than sell to Simulations Plus for less than it was owed.  The gulf was too wide for a compromise to be reached.  Simulations Plus is continuing to pursue acquisitions that it can pyramid onto its sales and marketing network, and which might offer technical synergies as well.  For now, though, the company will continue to focus on organic growth, which is being maintained in the 10%-20% range despite the slowdown in the economy.  Our estimates are unchanged.

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