Nearmap, a Perth-founded, ASX-listed aerial mapping software company, now based in Sydney, announced on Monday that it had entered takeover talks with US private equity firm Thoma Bravo.
Priced at $2.10 cash per share, the takeover will see Nearmap valued around $1.055 billion. This equates to an 83% premium to the business’ closing share price of $1.15 on July 5, one day prior to initial receipt of the bid, and a 39% premium on last week’s closing price of $1.51.
The announcement caused a surge in Nearmap (ASX:NEA) share price by 33% before closing up 25% at $1.88 with a market cap of around $755 million.
As one of the world’s largest private equity firms, Thoma Bravo invests in tech and software companies and has acquired over 380 companies in the past 20 years representing more than US$190 billion in enterprise value.
Nearmap confirmed in its statement to the ASX that Thoma Bravo’s due diligence is at an advanced stage. Exclusivity was granted for a 7-day period starting on 15 August to explore if a definitive transaction can be agreed on.
The company has also agreed to pay Thoma Bravo an expense reimbursement fee of up to US$3 million if the deal does not go through or if a rival takeover bid is agreed to instead.
Nearmap’s statement also provided an update on its financial performance to June 30. Group revenues are expected to come in at $159.9 million, which is at the top of its earlier FY22 guidance range of $150-$160 million and up from $128.2 million in FY21.
Group cash balance is expected to be $93.7 million following utilisation of approximately $20 million of capital raise proceeds during FY22 (excluding litigation) to support the growth of the business (compared to initial guidance of approximately $30 million).
Nearmap’s takeover announcement comes off the back of news earlier this month that another ASX company, health tech ResApp, is in talks with Pfizer who have put in an updated bid to acquire the company for 28 cents per share, or $179 million. ResApp has Perth connections, although it is based in Brisbane, using technology developed at the University of Queensland.
Like Nearmap, the bid caused ResApp’s share price to surge to a new 52-week high of $0.19 today, representing a 58% gain.
