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\centering\color{white}\Huge\bfseries EXECUTIVE MEMO
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TO: & CEO and Board Members \\
FROM: & First Last, Chief Strategy Officer \\
DATE: & \today \\
SUBJECT: & Recommendation: Acquire NorthPath Analytics \\
CLASSIFICATION: & Confidential -- Board Eyes Only \\
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Approval to proceed with a formal offer to acquire NorthPath Analytics for
approximately \$82M in a mixed cash/stock transaction. Decision needed at the
next board meeting.
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\section*{Background}
NorthPath's technology complements our offering and accelerates our
enterprise GTM by an estimated 12--18 months. They have signaled openness to
acquisition following their recent bridge round.
\section*{Strategic Rationale}
\begin{itemize}
\item \textbf{Product:} adds time-series anomaly detection, a top-five
customer request for 8 consecutive quarters.
\item \textbf{Market:} opens the financial-services vertical via
NorthPath's existing logos.
\item \textbf{Talent:} 14 senior engineers, zero expected attrition at
closing per preliminary conversations.
\end{itemize}
\section*{Financial Overview}
Projected 36-month IRR of 28\%, payback in 19 months. Accretive to EPS in
Year 2 under base case; neutral under conservative.
\section*{Risks \& Mitigations}
\begin{itemize}
\item \textbf{Integration risk:} use the same playbook as 2024's Axiom deal.
\item \textbf{Cultural fit:} quarterly pulse surveys pre- and post-close.
\item \textbf{Customer overlap:} fewer than 6\% of accounts overlap; minimal discount risk.
\end{itemize}
\section*{Recommendation}
Approve a formal offer at \$78M--\$82M with a preferred structure of 70\%
cash / 30\% stock. We propose targeting signing within 45 days.
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\noindent\textit{Full diligence pack available in the board portal.}
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