DATA Communications Management Corp. (DCM) is a Canadian-based provider of marketing and business communication solutions to companies in North America. Its technology-enabled content and workflow management capabilities solve the complex branding, communications, logistics, and regulatory requirements of leading enterprises so its customers can accomplish more in less time. Its services include printing, content management, digital asset management (DAM), labels & asset tracking, location-specific marketing, social media analytics, and multimedia campaign management. REPORT HIGHLIGHTS (1.0) ACQUISITION UPDATE: (1.1) Strategic Acquisition: Earlier this week, DCM acquired New Zealand-based Zavy Limited, a leader in social media analytics, to expand its marketing technology (MarTech) offerings. This acquisition helps DCM broaden its digital portfolio and introduces Zavy’s solutions to the North American market. (1.2) Advanced Social Media Insights: Zavy’s platform offers tools for social media benchmarking, AI-driven insights, content analysis, and workflow management across popular platforms like Facebook and Instagram. These capabilities allow brands to gain deeper insights into engagement and customer sentiment, facilitating more strategic, data-driven marketing. (1.3) Alignment with DCM’s Strategy: The acquisition aligns with DCM’s shift from a print-focused company to a digital solutions provider. Zavy’s social media analytics tools complement DCM’s recent moves toward digital workflow and asset management solutions, solidifying its position in the growing MarTech space. (1.4) Market Trends & Opportunities: The social media analytics market is projected to grow significantly, presenting DCM with new revenue opportunities, especially through cross-selling. (1.5)SMB Accessibility: Zavy’s flexible pricing makes social media analytics accessible to small and medium-sized businesses (SMBs), enabling DCM to serve a wider range of clients effectively. (2.0) FINANCIAL ANALYSIS & VALUATION: (2.1) We estimate an equal-weighted price target of $6.53 based on a DCF valuation ($9.40/share), a Revenue Multiple valuation ($5.70/share), and an EBITDA Multiple valuation ($4.50/share). (2.2) We are maintaining our Buy rating and our one-year price target of $6.55.