Australia’s ELMO Software said on Wednesday it has agreed to a near $319m takeover bid from Los Angeles-based K1 Investment Management.
The U.S. group offered A$4.85 per share in cash for the cloud-based software solutions business that operates in Australia, New Zealand and the United Kingdom.
The offer is a 100.4% premium to the closing share price on Oct. 12, the day before ELMO announced it had received approaches expressing interest in a takeover. ELMO’s shares on Wednesday shot 41% higher, erasing a 27% loss incurred so far in 2022 ahead of the takeover.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
The bid was recommended to shareholders by ELMO’s independent board committee, the company said. ELMO’s chief executive Danny Lessem, who owns 11% of the company’s stock, will vote in favour of the deal.
Two of ELMO’s biggest investors, JLAB Investments and the Garber Family Trust, have also backed the bid, ELMO’s statement on Wednesday said.
Since K1 is an overseas firm the takeover will require approval from Australia’s Foreign Investment Review Board.
Source: Reuters
Can’t stop reading? Read more
OVS secures $330m financing as TIP-backed retailer strengthens balance sheet
OVS secures $330m financing as TIP-backed retailer strengthens balance sheet OVS has secured a...
Ares and Antares arrange $1bn private credit deal for Pritzker-backed PLZ
Ares and Antares arrange $1bn private credit deal for Pritzker-backed PLZ Ares and Antares have...
Blackstone drives Medallia negotiations as Thoma Bravo weighs options
Blackstone drives Medallia negotiations as Thoma Bravo weighs options Blackstone is leading a...