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
Private equity duo Kingswood and PIP to revive The Vitamin Shoppe with $193.5m acquisition
Private equity duo Kingswood and PIP to revive The Vitamin Shoppe with $193.5m acquisition...
Ex-EY and PwC leaders team up with Warburg Pincus to disrupt UK consultancy market
Ex-EY and PwC leaders team up with Warburg Pincus to disrupt UK consultancy market Private equity...
Generali Investments and Partners Group launch global private credit secondaries fund to meet growing LP demand
Generali Investments and Partners Group launch global private credit secondaries fund to meet...