Shares of the mapping software company rose for a third time on Monday after confirming that it is in talks with US private equity firm Tom Bravo for a takeover.
The takeover price of 2.10 cash per share values the business at about $1.055 billion, an 83% premium to NeerMap’s closing price of $1.15 on July 5, a day before the takeover proposal was made. And a 39% premium to Friday’s closing price of $1.51.
Also a 67% premium to Nearmap’s 6-month volume average price of $1.26. Nearmap (ASX: NEA) last traded in November 2021 for over $2.
Shares of NeerMap rose 33% today after the bid was announced, before closing up 25% at $1.88 – a market value of around $755 million.
The takeover bid was set at around half the company’s 24-year-old stock price, which hit a June 2019 high.
Thomas Bravo invests in technology and software companies and has more than US$114 billion in assets under management and has acquired 380 businesses worth a total of US$190 billion over the past 20 years.
Nermap said in a statement to the ASX that Toma Bravo’s due diligence is now at a high level and includes all financial and other critical valuation considerations, and that the company has granted Toma Bravo a 7-day grace period from today. Through the numbers.
As part of the deal, Nermap has agreed to pay Thoma Bravo up to $3 million in compensation if the deal is not completed or if the ASX-listed company agrees to a rival bid within six months.
Ahead of announcing its annual results this Wednesday, August 17, Neermap has provided an update on its financial performance up to June 30.
The group’s annual contract value (ACV) is expected to be $159.9 million at constant exchange rates, with initial FY22 guidance ranging from $150-$160 million and $128.2 million in FY21.
Cash balance is expected to be $93.7 million, following the use of approximately $20 million of capital raising proceeds in FY22 (excluding litigation) to support the growth of the business (compared to initial guidance of $30 million).