The acquisition price of $2.10 cash per share values the company at approximately $1.055 billion and is an 83% premium over Nearmap’s closing price of $1.15 on July 5, the day before the acquisition proposal was filed; and a 39% premium to Friday’s closing price of $1.51.
It’s also a 67% premium over Nearmap’s 6-month volume-weighted average price of $1.26. Nearmap (ASX:NEA) last traded above $2 in November 2021.
Nearmap shares rose 33% today after the market bid was announced, before closing 25% at $1.88 – a market cap of about $755 million.
The takeover offer nevertheless stands at about half the value of the 24-year-old company’s shares at their peak in June 2019.
Thoma Bravo invests in technology and software companies and has more than $114 billion in assets under management, having acquired 380 companies with a total value of $190 billion over the past 20 years.
In his statement to the ASX, Nearmap said that Thoma Bravo’s due diligence is now at an advanced stage and encompasses all financial and other valuation-critical due diligence, and the company has granted Thoma Bravo exclusivity for 7 days from today, as work by the numbers.
As part of the deal, Nearmap has agreed to pay Thoma Bravo an expense allowance of up to US$3 million if the deal falls through or the ASX-listed company agrees to a competing takeover bid within six months.
Nearmap also offered an update on its financial performance through June 30, ahead of announcing its full-year results on Wednesday, August 17.
The group’s annual contract value (ACV) is expected to be A$159.9 million at constant exchange rates, within the initial FY22 guidance of $150-$160 million and an increase of $128.2 million in FY21.
Cash balance is expected to be $93.7 million, after using approximately $20 million in capital increase proceeds during FY22 (excluding lawsuits) to support the company’s growth (compared to the initial expectation of approximately $30 million).